Volume Of Ratings Actions Remains Low Despite Market Turmoil

摘要

The 14 actions (upgrades plus downgrades) in the third quarter were the third lowest quarterly total on record since the Edison Electric Institute (EEI) began gathering data in 2001. (See Table 1.)rnIndustry credit quality rose slightly, with nine upgrades and five downgrades, although five of the upgrades related to one company. This follows a modest decline in credit quality during the first half of 2008, leaving 23 downgrades outnumbering 18 upgrades through the first nine months of the year. Credit quality improved steadily over the previous three years, with upgrades outnumbering downgrades in 10 of the 12 quarters prior to first quarter 2008.rnThe quarter's upgrades centered on prospects for effective management of capital spending programs and an improved regulatory environment in Illinois. Downgrades related primarily to the nonutility side of the business. Ratings outlooks at quarter-end were mostly negative, a trend in place throughout 2008 and for most of 2007.