Fitch Ratings Affirms IPL & IPALCO.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings has affirmed the ratings of Indianapolis Power & Light Company (IPL (Initial Program Load) Same as boot. 1. IPL - Information Processing Language. 2. IPL - Internet Public Library. 3. IPL - Initial Program Load. 4. IPL - Initial Program Loader. ) and IPALCO IPALCO Indianapolis Power and Light Company Enterprises, Inc. (IPALCO). The Rating Outlook is Stable. A full description of the rating actions is listed below. IPL and IPALCO's ratings reflect the low business risk associated with IPL's utility operations, the low exposure to fuel price volatility and the constructive regulatory environment in Indiana. IPALCO's ratings also consider the structural subordination of IPALCO's debt to that of IPL, the reliance on distributions from IPL to service debt and operating expenses, and linkage to much weaker parent company AES Corporation (AES). However, Fitch recognizes that IPL and IPALCO will have greater exposure and credit linkage to AES upon the expiration of the Indiana Utility Regulatory Commission (IURC IURC Indiana Utility Regulatory Commission ) requirement to notify the latter of proposed dividends. Under this process, prior to declaring or paying any dividend, IPL must file a report with the IURC that sets forth among other things, the amount of any proposed dividend and the amount of dividends distributed during the prior 12 months. This dividend approval process is scheduled to expire at the end of 2006 and there are no indications that the IURC intends to extend this approval process. While recognizing the linkage with AES, the affirmation of the ratings of IPL and IPALCO acknowledge the much improved and currently stable credit profile of AES. IPALCO is a holding company whose principal subsidiary is IPL. IPL is a regulated electric utility, principally engaged in providing generation, transmission, distribution and sale of electric energy to more than 465,000 customers in the Indianapolis metropolitan area. About 99% of the company's power generated (3,252 MW net summer capability) is coal-fired. The company plans for a reserve margin of approximately 12%. IPALCO is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AES. Fitch has affirmed the following ratings: Indianapolis Power & Light Company --Issuer default rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) at 'BBB-'; --First mortgage bonds at 'BBB+'; --Secured PCRBs at 'BBB+'; --Unsecured PCRBs at 'BBB'; --Preferred stock at 'BBB-'; --Rating Outlook Stable. IPALCO Enterprises, Inc. --Issuer default rating (IDR) at 'BBB-'; --Senior notes at 'BBB-' --Rating Outlook Stable. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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