S&P Cuts Scana After Judge's Decision on Rates
August 09 2018 - 2:57PM
Dow Jones News
By Michael Dabaie
S&P Global Ratings on Thursday cut its ratings on Scana
Corp. (SCG) by one notch to 'BBB-' from 'BBB'.
The ratings remain on CreditWatch with negative implications,
S&P said.
S&P said the cut to Scana and its subsidiaries, South
Carolina Electric & Gas Co. and Public Service Co. of North
Carolina, follows a federal judge's decision Monday to back South
Carolina lawmakers who cut Scana's electricity rates over a failed
nuclear project.
Judge J. Michelle Childs of the U.S. District Court in Columbia,
S.C., refused to block a state law shaving 15% from consumers'
bills and depriving South Carolina Electric & Gas of roughly
$31 million in monthly revenue. South Carolina Electric & Gas
said Tuesday it will appeal the order.
The ratings agency said the CreditWatch with negative
implications reflects its view of ongoing uncertainty in cost
recovery of the abandoned V.C. Summer nuclear construction project.
S&P said it could lower ratings again if credit metrics weaken
further beyond its base-case scenario, which assumes the temporary
rate cut is made permanent.
Dominion Energy Inc. (D) early this year struck a deal to buy
Scana.
Shares of Scana were recently down 0.7% to $38.46.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
August 09, 2018 14:42 ET (18:42 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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