Standard&Poor's Ratings Services' 'BB+' corporate credit rating on Tucson Electric Power Co. (TEP) reflects the consolidated creditworthiness of unrated parent UNS Energy Corp (UNS). TEP is by far UNS's largest holding, generating about 80% of the consolidated cash flows from operations and 95% of net income in 2011. TEP is a small, regulated integrated electric utility company serving Tucson and southern Arizona. UNS's other holdings consist primarily of regulated utilities UNS Electric and UNS Gas, which serve portions of northern and southeastern Arizona. These holdings are small and we do not consider them to be significant influences on credit quality. The consolidated business risk profile is "strong" under our criteria, reflecting TEP's steady regulated utility operations, a predominantly
