The rating on Xcel Energy Inc. is based on the consolidated credit profile of Xcel and its vertically integrated utility subsidiaries, Northern States Power Co. (NSP-Minnesota), Northern States Power Wisconsin (NSP-Wisconsin), Public Service Co. of Colorado, and Southwestern Public Service Co. The rating reflects the utilities' solid business profile, which incorporates the generally supportive state regulation that governs each utility's rates, the relatively low-cost power supply and overall fuel diversity, and the diverse geographic service territories. The rating also reflects a heavily leveraged financial profile in which adjusted debt represents 62% of total capital, well above the 55% benchmark for a solid 'BBB' rating. This degree of leverage is due, in nearly equal measure, to debt at the holding company
