Research Update: FirstEnergy Corp. Upgraded To 'BBB' On Expected Deleveraging Following FET Minority Stake Sale; Outlook Positive - S&P Global Ratings’ Credit Research

Research Update: FirstEnergy Corp. Upgraded To 'BBB' On Expected Deleveraging Following FET Minority Stake Sale; Outlook Positive

Research Update: FirstEnergy Corp. Upgraded To 'BBB' On Expected Deleveraging Following FET Minority Stake Sale; Outlook Positive - S&P Global Ratings’ Credit Research
Research Update: FirstEnergy Corp. Upgraded To 'BBB' On Expected Deleveraging Following FET Minority Stake Sale; Outlook Positive
Published Apr 23, 2024
17 pages (4682 words) — Published Apr 23, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

FirstEnergy Corp. (FE) recently closed the sale of a 30% minority interest in subsidiary FirstEnergy Transmission LLC (FET) to Brookfield Super-Core Infrastructure Partners for $3.5 billion. We expect management to use proceeds in a credit-supportive manner, improving FE's consolidated funds from operations (FFO) to debt to consistently above 12%. We raised the rating on FE to 'BBB' from 'BBB-' and by one notch on most subsidiaries (see ratings list): FET, American Transmission Systems Inc. (ATSI), Trans-Allegheny Interstate Line Co. (TrAIL), Mid-Atlantic Interstate Transmission LLC (MAIT), FirstEnergy Pennsylvania Electric Co. (FE-PA), Ohio Edison Co., Toledo Edison Co., and Allegheny Generating Co. (AGC). Furthermore, we completed our review of AGC under our new Sector-Specific Corporate Methodology, published April 4, 2024, and removed

  
Brief Excerpt:

...- FirstEnergy Corp. (FE) recently closed the sale of a 30% minority interest in subsidiary FirstEnergy Transmission LLC (FET) to Brookfield Super-Core Infrastructure Partners for $3.5 billion. We expect management to use proceeds in a credit-supportive manner, improving FE's consolidated funds from operations (FFO) to debt to consistently above 12%. - We raised the rating on FE to '###' from '###-' and by one notch on most subsidiaries (see ratings list): FET, American Transmission Systems Inc. (ATSI), Trans-Allegheny Interstate Line Co. (TrAIL), Mid-Atlantic Interstate Transmission LLC (MAIT), FirstEnergy Pennsylvania Electric Co. (FE-PA), Ohio Edison Co., Toledo Edison Co., and Allegheny Generating Co. (AGC). Furthermore, we completed our review of AGC under our new Sector-Specific Corporate Methodology, published April 4, 2024, and removed our issuer credit rating on the entity from under criteria observation. - We affirmed our ratings on Monongahela Power Co. (MP), Potomac Edison Co....

  
Report Type:

Research Update

Ticker
FE
Issuer
FirstEnergy Corp.
GICS
Electric Utilities (55101010)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: FirstEnergy Corp. Upgraded To 'BBB' On Expected Deleveraging Following FET Minority Stake Sale; Outlook Positive" Apr 23, 2024. Alacra Store. May 17, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-FirstEnergy-Corp-Upgraded-To-BBB-On-Expected-Deleveraging-Following-FET-Minority-Stake-Sale-Outlook-Positive-3157303>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: FirstEnergy Corp. Upgraded To 'BBB' On Expected Deleveraging Following FET Minority Stake Sale; Outlook Positive Apr 23, 2024. New York, NY: Alacra Store. Retrieved May 17, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-FirstEnergy-Corp-Upgraded-To-BBB-On-Expected-Deleveraging-Following-FET-Minority-Stake-Sale-Outlook-Positive-3157303>
  
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