Moody’s upgrades PPL’s credit rating

Moody’s Investors Service has improved the investment-grade credit ratings of PPL Corp. and PPL Capital Funding Inc. after PPL Corp. purchased The Narragansett Electric Co.

The Allentown-based utility saw its issuer rating upgraded from Baa1 to Baa2. Moody’s also upgraded the senior unsecured ratings of PPL Capital Funding from Baa1 from Baa2.

The senior unsecured and issuer ratings of Narragansett Electric, now doing business as Rhode Island Energy, rose from A3 from Baa1 and its preferred stock securities rating was bumped up
from Baa2 from Baa3.

“These ratings upgrades reflect the improved financial strength of the new PPL following the sale of our U.K. utility business in 2021 and our recent acquisition of Narragansett Electric,” said
PPL President and CEO Vincent Sorgi.

“As a result of our strategic repositioning … U.S.-focused PPL has one of the utility sector’s best credit profiles, a balance sheet capable of supporting robust growth without equity needs for the foreseeable future, and a de-risked business plan to drive significant value for our shareowners and customers moving forward,” he said.

PPL Corp. is a major provider of electricity and natural gas, serving 3.5 million U.S. customers.

Paula Wolf is a freelance writer.