Supportive Regulation: IPL and IPALCO
's ratings and Outlook continue to reflect the favorable regulatory environment in Indiana.
The Canadian company has also agreed to invest $349 million in IPALCO
through 2016 in return of a 17.65% equity stake.
As part of the agreement, CDPQ will acquires 15% of AES US Investments (AES US Investments), a wholly-owned subsidiary of AES that owns 100% of IPALCO
at the time was getting ready to merge with the AES Corporation, a Virginia-based global-utility behemoth, in a deal that IPALCO
'S managers and board of directors were touting to shareholders--while rushing to dump their own stock before the merger took effect.
Ask a group of CFOs to identify their greatest information needs and you're likely to hear a variation on IPALCO
's theme: managing enterprise operating costs and measuring customer and product profitability.
Fitch Ratings believes that the settlement, if approved, is credit positive and an important consideration in resolving the Positive Outlooks at IPL and its parent IPALCO
Enterprise (IPLACO, IDR BB+/Outlook Positive).
Another deal that has a similar storyline is the sale of energy holding company IPALCO
Enterprises to AES Corp.
SCG, as a stand-alone entity with the current nuclear recovery uncertainty, is weakly positioned compared to IPALCO
Enterprises, Inc.'s (BB+/Positive), given the more constructive and predictable regulatory environment of IPALCO
's subsidiary, Indianapolis Power and Light Company (BBB-/Positive).
Enterprises (IPL) 24.19 17.06 41.8 1.39 17.4
The M&A game dealt Indiana some big-name losses in 2000, including Arvin, IPALCO
and Bindley Western.
Fitch has also affirmed IPALCO
Enterprises, Inc.'s (IPALCO
) Long-Term IDR at 'BB+' and the Long-Term IDR for Indianapolis Power & Light (IPL) at 'BBB-'.
Enterprises (IPL) 23.50 17.06 37.7 1.39 17.2