Majority of consolidated cash flow comes from more–predictable, regulated lower-risk electric and gas businesses. Utility operations benefit from generally constructive regulatory frameworks. Lack of higher-risk unregulated activities. Solid operational performance. Debt leverage, as measured by debt to EBITDA, expected to exceed 4x. Funds from operations (FFO) to debt slightly below the mid-point of the financial risk profile assessment of significant. Capital spending over $1.4 billion per year. Ongoing dividend payments. Negative discretionary cash flow resulting in external funding needs. Our stable rating outlook through 2017 on U.S. utility holding company WEC Energy Group Inc. (WEC) reflects our expectation that management will continue to focus on its core utility operations and reach constructive regulatory outcomes to avoid any meaningful rise in
