The ratings on FPL Group Inc. reflect the strength of the regulated cash flows from the integrated electric utility, Florida Power&Light Co. (FP&L), as well as the diverse and substantial cash generation capabilities of its unregulated operations at its subsidiary, NextEra Resources. The utility contributes about half of the consolidated credit profile and has better business fundamentals than most of its integrated electric peers, with a healthy and growing service territory, sound operations, and a supportive regulatory environment. The company's increasing exposure to wholesale energy activities, its willingness to expand through acquisitions, fluctuating cash flows from NextEra's portfolio of merchant generation, and the utility's significant exposure to natural gas detract from credit quality. Standard and Poor's characterizes FPL's
