Research Update: Xcel Energy Inc. Outlook Revised To Negative On Increasing Wildfire Risks; Ratings Affirmed

There are numerous wildfires burning in the Texas Panhandle where Xcel Energy Inc. subsidiary Southwestern Public Service Co. (SPS) serves a portion of the affected region. Although information relating to the origins of the fires has yet to be identified, expectations are that lawsuits will be filed against Xcel and its subsidiary SPS. Given the wildfires in SPS' service territory and the legal risks it faces in Colorado with subsidiary Public Service Co. of Colorado (PSCo), we believe Xcel's credit quality could suffer over the next 12 months from higher business risk or weaker financial measures. We therefore revised our outlook on Xcel, SPS, and Northern States Power Co. (NSP-M) to negative from stable and affirmed our 'A-' issuer credit

...- There are numerous wildfires burning in the Texas Panhandle where Xcel Energy Inc. subsidiary Southwestern Public Service Co. (SPS) serves a portion of the affected region. - Although information relating to the origins of the fires has yet to be identified, expectations are that lawsuits will be filed against Xcel and its subsidiary SPS. - Given the wildfires in SPS' service territory and the legal risks it faces in Colorado with subsidiary Public Service Co. of Colorado (PSCo), we believe Xcel's credit quality could suffer over the next 12 months from higher business risk or weaker financial measures. - We therefore revised our outlook on Xcel, SPS, and Northern States Power Co. (NSP-M) to negative from stable and affirmed our 'A-' issuer credit ratings on Xcel and SPS and our 'A' issuer credit rating on NSP-M. We also affirmed our 'A-' issuer credit ratings on Northern States Power Wisconsin (NSP-W) and PSCo. The outlook on NSP-W remains stable and the outlook on PSCo remains negative....

Research Update