Research Update: Xcel Energy Inc. And Most Subsidiaries Downgraded On Increasing Wildfire Risks; Outlook Negative

Minneapolis-based Xcel Energy Inc. recently acknowledged that its power lines appear to have been involved in the ignition of the Smokehouse Creek fire, which has burned more than one million acres in the Texas panhandle to date. Given this development, we believe Xcel's wildfire risk is significantly greater than we previously anticipated. We lowered our issuer credit ratings on Xcel to 'BBB+', Southwestern Public Service Co. (SPS) to 'BBB', and Northern States Power Co. (NSP-M) to 'A-'. We affirmed our 'A-' issuer credit ratings on Northern States Power Wisconsin Co. (NSP-W) and Public Service Co. of Colorado (PSCo). We revised the outlook on NSP-W to negative.. The negative outlook on Xcel and all its subsidiaries reflects increasing wildfire risks and

...- Minneapolis-based Xcel Energy Inc. recently acknowledged that its power lines appear to have been involved in the ignition of the Smokehouse Creek fire, which has burned more than one million acres in the Texas panhandle to date. Given this development, we believe Xcel's wildfire risk is significantly greater than we previously anticipated. - We lowered our issuer credit ratings on Xcel to '###+', Southwestern Public Service Co. (SPS) to '###', and Northern States Power Co. (NSP-M) to 'A-'. We affirmed our 'A-' issuer credit ratings on Northern States Power Wisconsin Co. (NSP-W) and Public Service Co. of Colorado (PSCo). We revised the outlook on NSP-W to negative.. - The negative outlook on Xcel and all its subsidiaries reflects increasing wildfire risks and our expectation that the significant legal risks the company faces in the wake of the Marshall wildfire in Colorado and the ongoing wildfires in the Texas panhandle could cause its credit quality to deteriorate....

Research Update