The rating on West Penn Power Co. (B/Stable) reflects the consolidated credit profile of its parent, Allegheny Energy Inc. (Allegheny), whose credit quality is determined in conjunction with that of its unregulated subsidiary, Allegheny Energy Supply Co. LLC (AE Supply), and its regulated utility subsidiaries, Monongahela Power Co., Potomac Edison Co., and West Penn. As a consolidated entity, Allegheny has a weak corporate credit profile because the company is heavily burdened with debt and non-performing assets at AE Supply. The consolidated entity's current debt-to-capitalization is about 78%, while its funds from operations-to-interest coverage will probably hover in the low 2x range in the intermediate term. These concerns are only partially offset by an average business risk profile due to the
