Today, Moody’s Investors Services downgraded Southwestern Electric Power Company’s rating from Baa1 to Baa3, one notch above junk. Moody’s cited the “regulatory, environmental and execution risks associated with the Turk plant,” combined with SWEPCO’s already weak balance sheet and financial profile, as the reason for the downgrade.
A week ago, SWEPCO vowed to continue building its $1.6 billion coal-powered plant in Hempstead County, despite the Arkansas Court of Appeals revoking its construction permit. The company has asked the Arkansas Supreme Court to review the case.
For more information, check out this article by the Wall Street Journal.