Tear Sheet: Xcel Energy Inc.'s Latest Financials In Line With Expectations But Credit Quality Remains Pressured From Wildfire Risks

: Xcel Energy Inc. reported its financial performance for the second quarter of 2024. The company?s funds from operations (FFO) to debt for the last 12 months was 17.3%. The company is accelerating certain wildfire mitigation measures, such as pole inspections and priority pole replacements, while also deploying more advanced mitigation equipment, such as artificial intelligence cameras and risk modelling systems. Xcel?s subsidiaries in Colorado, Texas, and New Mexico have also implemented public safety power shut-off (PSPS) events recently. Additional lawsuits related to the Texas Smokehouse Creek fire continue to be filed against Xcel and its subsidiary Southwestern Public Service Co.; to date, the company has accrued $215 million in liabilities related to this fire. : Xcel?s consolidated financial measures

...Rating Component Scores Foreign currency issuer credit rating ###+/Negative/A-2 Local currency issuer credit rating ###+/Negative/A-2 Business risk Excellent Country risk Very Low Industry risk Very Low Competitive position Strong Financial risk Significant Cash flow/leverage Significant Anchor a- Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Adequate (no impact) Management and governance Neutral (no impact) Comparable rating analysis Negative (-1 notch) Stand-alone credit profile ###+...

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