The ratings on Duke Energy reflect the consolidated credit profiles of its operating subsidiaries. Duke Energy's business risk profile is strong ('5') and its financial profile risk is viewed as intermediate. The company's business risk profile is supported by stable, regulated electric utility operations in five states that account for more than 85% of cash flow, regulatory environments that are generally supportive of credit quality, service territories with demographics that range from average to attractive, and rates that are competitive for the regions of operation. The business risk profile is further supported by management that is committed to credit quality and has consistently delivered on a timely basis in its efforts to reduce business risk and improve credit quality. These
