Tucson Electric Power Co.'s (TEP) recent track record of stable profit measures has resulted in a stronger competitive position and an improved business risk assessment. We are affirming our ratings on TEP, including the 'BBB+' issuer credit rating and the 'BBB+' ratings on its senior unsecured debt, and revising the rating outlook to stable from negative reflecting the reduced probability of a downgrade in the event of a downgrade on ultimate parent Fortis Inc. At the same time, we are revising TEP's stand-alone credit profile (SACP) to 'bbb+' from 'bbb'. We view TEP as relatively weaker within the excellent business risk profile category largely due to the company's small size, and our view of a historically challenging regulatory environment in
