The PURA proposed ROE penalties for UI in its pending rate case that, if approved, would hamper net income growth and reduce the company's ratio of CFO pre-WC to debt below 20%.
Our credit view of Ul reflects its strong financial metrics, including CFO pre-WC to debt of around 20%, offset by a more challenging Connecticut regulatory environment.
Our view of United Illuminating reflects its low risk T&D business, a constructive rate settlement amid political & regulatory challenges and expected cash flow to debt ratios around 20%.
UI's credit reflects strong cost recovery provisions and financial metrics but is constrained by the uncertainty of regulatory changes coming in the next 12-18 months.
Our credit view of UI reflects the supportive regulatory framework in Connecticut and financial metrics that will decline, but remain strong with cash flow to debt between 17-20%.
Our credit view of United Illuminating Company reflects the improving credit supportiveness of its regulatory relationship with the PURA and adequate financial ratios.