Moody's cites improved overall business risk profile of PPL's
U.S.-focused regulated portfolio
ALLENTOWN, Pa., June 7, 2022
/PRNewswire/ -- Moody's Investors Service on Monday upgraded the
investment-grade credit ratings of PPL Corporation (NYSE: PPL) and
PPL Capital Funding, Inc., following PPL's recent acquisition of
The Narragansett Electric Company, which is now doing business as
Rhode Island Energy.
The national credit rating service upgraded the ratings of PPL,
including its issuer rating, and PPL Capital Funding, including its
senior unsecured rating, to Baa1 from Baa2. Moody's also upgraded
Narragansett Electric's senior unsecured and issuer ratings to A3
from Baa1 and preferred stock securities rating to Baa2 from
Baa3.
"These ratings upgrades reflect the improved financial strength
of the new PPL following the sale of our U.K. utility business in
2021 and our recent acquisition of Narragansett Electric," said PPL
President and Chief Executive Officer Vincent Sorgi.
"As a result of our strategic repositioning, today's new,
U.S.-focused PPL has one of the utility sector's best credit
profiles, a balance sheet capable of supporting robust growth
without equity needs for the foreseeable future, and a de-risked
business plan to drive significant value for our shareowners and
customers moving forward," said Sorgi.
"We believe these ratings upgrades also reflect the quality of
our new regulated utility mix, our disciplined approach to
deploying capital and the constructive regulatory jurisdictions in
which we operate."
In announcing its upgrades to PPL and PPL Capital Funding,
Moody's cited PPL's improved overall business risk profile and
credit supportive regulatory environments as contributing factors.
Moody's said its upgrade of Narragansett Electric's credit rating
reflects its "expectation that the utility will be able to maintain
its strong, stable credit profile going forward without the credit
pressure from its previous highly leveraged parent company."
Moody's also indicated a key driver of the Narragansett Electric
rating upgrade was improved corporate governance, as PPL has agreed
to strengthen ring-fencing provisions to better insulate the
Rhode Island utility from its
parent company.
As previously announced, PPL will host a virtual Investor Day on
June 9 beginning at 10 a.m. Eastern Time to discuss the company's
business strategy and long-term financial outlook, including its
improved credit profile. Investors and analysts may access the
event through the Investor Relations section of the company's
website at https://pplweb.investorroom.com.
About PPL Corporation
PPL Corporation (NYSE: PPL), based in Allentown, Pennsylvania, is a leading U.S.
energy company focused on providing electricity and natural gas
safely, reliably and affordably to 3.5 million customers in the
U.S. PPL's high-performing, award-winning utilities are addressing
energy challenges head-on by building smarter, more resilient and
more dynamic power grids and advancing sustainable energy
solutions. For more information, visit www.pplweb.com.
Note to Editors: Visit our media website at www.pplnewsroom.com
for additional news about PPL Corporation.
Contacts: For news media: Ryan
Hill, 610-774-4033
For
financial analysts: Andy Ludwig,
610-774-3389
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SOURCE PPL Corporation