The rating on West Penn Power Co. (West Penn) 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 the previous 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. Allegheny's financial leverage is about 73%, and Standard&Poor's expects funds from operations (FFO) to interest coverage
