The rating on West Penn Power Co. reflects the consolidated credit profile of its parent, Allegheny Energy Inc., whose credit quality is determined in conjunction with its unregulated subsidiary, Allegheny Energy Supply Co. LLC, and its regulated utility subsidiaries, Monongahela Power Co., Potomac Edison Co., and West Penn Power. As a consolidated entity, Allegheny has a weak corporate credit profile because the company is heavily burdened with debt and nonperforming assets at Allegheny Energy Supply. The consolidated entity's current debt-to-capitalization ratio is about 70%, while its funds from operations 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 stability of
