The ratings on diversified energy company Duke Energy Corp. reflect the consolidated credit profiles of its operating subsidiaries, Duke Power Co. LLC, Duke Capital LLC, and Cinergy Corp. Duke Energy's business risk profile is scored as '6' (satisfactory), and its financial risk profile is adequate. (Utility business risk profiles are categorized from '1' (excellent) to '10' (vulnerable).) The company's business risk profile is supported by a stable, regulated electric utility; low-operating-risk gas transmission and distribution (T&D) operations; and gas gathering operations that provide the bulk of cash flow. These strengths are offset by increasing capital spending to address growing demand and environmental requirements; higher-risk international operations; and uncertainty as to how the regulatory environment will evolve in Ohio after 2008.
