Xcel Energy Inc.

S&P Global Ratings' rating outlook over the next 24 months on Xcel and its subsidiaries is stable. We base the outlook on our expectation that Xcel's management will continue to reach constructive regulatory outcomes to avoid any significant rise in business risk for the regulated utilities. Specifically, our base-case forecast includes adjusted funds from operations (FFO) to debt of about 16% and assumes the company will continue to fund its capital investments in a balanced manner to support its capital structure. We could lower the rating on Xcel if its financial ratios weaken and consistently reflect adjusted FFO to debt at or below 15%. This would most likely occur if rate-case outcomes are weaker than expected and capital spending materially

...(Editor's Note: On July 29, 2020, we republished this article, originally published on June 2, 2020, to correct incorrect descriptions of the diversification/portfolio effect and capital structure scores.)...

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