Research Update: NextEra Energy Inc. 'A-' Rating Affirmed On Strong Growth; Outlook Remains Stable

Following NextEra Energy Inc.?s (NEE) recent investor conference, we believe that NEE's non-utility competitive contracted business will experience increasing growth related to demand from data centers and the onshoring of manufacturing. We also expect an improvement in the non-utility businesses' cash flow stability because of the company's increasing reliance on the transferability of tax credits. At the same time, the company's regulated utilities are experiencing high growth for renewable generation and as such we expect that the company will maintain its utility to non-utility balance at about 70% of consolidated EBITDA to about 30% of consolidated EBITDA. We affirmed all our ratings on NEE, including the 'A-' issuer credit rating and the 'BBB+' senior unsecured debt rating. The outlook remains

...- Following NextEra Energy Inc.'s (NEE) recent investor conference, we believe that NEE's non-utility competitive contracted business will experience increasing growth related to demand from data centers and the onshoring of manufacturing. We also expect an improvement in the non-utility businesses' cash flow stability because of the company's increasing reliance on the transferability of tax credits. At the same time, the company's regulated utilities are experiencing high growth for renewable generation and as such we expect that the company will maintain its utility to non-utility balance at about 70% of consolidated EBITDA to about 30% of consolidated EBITDA. - We affirmed all our ratings on NEE, including the 'A-' issuer credit rating and the '###+' senior unsecured debt rating. The outlook remains stable. - We affirmed all our ratings on Florida Power & Light Co., including the 'A' issuer credit rating and 'A-1' short-term rating.. The outlook remains stable. - The stable outlook...

Research Update