S&P Cuts Scana After Judge's Decision on Rates

By Michael Dabaie

S&P Global Ratings on Thursday cut its ratings on Scana Corp. (SCG) by one notch to 'BBB-' from 'BBB'.

The ratings remain on CreditWatch with negative implications, S&P said.

S&P said the cut to Scana and its subsidiaries, South Carolina Electric & Gas Co. and Public Service Co. of North Carolina, follows a federal judge's decision Monday to back South Carolina lawmakers who cut Scana's electricity rates over a failed nuclear project.

Judge J. Michelle Childs of the U.S. District Court in Columbia, S.C., refused to block a state law shaving 15% from consumers' bills and depriving South Carolina Electric & Gas of roughly $31 million in monthly revenue. South Carolina Electric & Gas said Tuesday it will appeal the order.

The ratings agency said the CreditWatch with negative implications reflects its view of ongoing uncertainty in cost recovery of the abandoned V.C. Summer nuclear construction project. S&P said it could lower ratings again if credit metrics weaken further beyond its base-case scenario, which assumes the temporary rate cut is made permanent.

Dominion Energy Inc. (D) early this year struck a deal to buy Scana.

Shares of Scana were recently down 0.7% to $38.46.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

August 09, 2018 14:42 ET (18:42 GMT)

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