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 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 is restoring its credit profile after prior management's unsuccessful expansion into trading activities. Having sold most of its trading portfolio, the company's cash flow is now stable, but due to its heavy debt burden incurred from discontinued operations, credit measures are weak. Although West Penn's stand-alone credit quality is substantially stronger than the consolidated entity, Standard&Poor's views West Penn's default risk
