WEC Energy Group Inc.

Our stable outlook on WEC over the next two years reflects our expectation that management will continue to focus on its core utility operations and reach constructive regulatory outcomes to avoid heightened business risk. The outlook also reflects our base-case forecast level of adjusted funds from operations (FFO) to debt averaging roughly 16% per year, in line with the current significant financial risk profile. We could lower the rating if WEC's business risk profile, which we assess as excellent, weakens. We could also lower the rating if core financial measures consistently underperform our base-case forecast and remain at less credit-supportive levels, including annual adjusted FFO to total debt of less than 15%. This could occur if rate case outcomes are

...The acquisition of a wind energy generation facility will complement the company's long-term strategy of diversifying its generation portfolio. Additional wind generation, along with proposed utility-scale solar facilities, will help WEC Energy Group Inc. (WEC) lower emissions and reduce the proportion of coal-based generation. We expect the company to fund these investments in a credit-supportive manner. WEC has a large, multistate presence with operations under constructive regulatory frameworks that bolster overall credit quality. WEC is one of the larger electric utilities in U.S. and delivers electricity and natural gas to about 4.5 million customers in four states. This diversity minimizes the impact of adverse regulatory decisions or regional economic difficulties. All jurisdictions have constructive regulatory frameworks that provide for the timely recovery of approved capital expenditures, as well as fuel and natural gas cost and various operating expense recoveries. A proposed...

Full Report