US utilities cut to negative for first time ever


Highly geared: A FirstEnergy Corp power plant in Eastlake, Ohio. The sector’s consolidated debt-to-equity ratio has hit the highest level since 2008 as companies finance mergers, acquisitions and other investments in renewable energy and pipelines. — AP

SAN FRANCISCO: For the first time ever, Moody’s Investors Service cut its outlook for US utilities to negative, warning that the sector’s debt levels have reached their highest since the financial crisis and may remain there for months.

The sector’s consolidated debt-to-equity ratio has hit the highest level since 2008 as companies finance mergers, acquisitions and other investments in renewable energy and pipelines, Moody’s analysts led by Ryan Wobbrock said in a note on Monday.

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