Another story from the El Paso Inc.:
El Paso Electric has been placed on review for downgrade by one of the major Wall Street bond rating agencies following the announcement the utility would be sold for $4 billion to a private equity firm.
Moody’s Investors Service placed El Paso Electric’s medium grade Baa1 rating on review, citing a weakening of the utility’s financial metrics and credit profile along with the potential impact on the company’s credit by the upcoming sale to JP Morgan’s Infrastructure Investments Fund, also known as IIF.
Moody’s also noted the lack of detail in IIF’s application to regulators for approval of the sale as a rationale for the downgrade review.
But hey. It’s All Good.