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TEXT-S&P: American Electric Power ratings unaffected
July 3, 2012 / 5:06 PM / 5 years ago

TEXT-S&P: American Electric Power ratings unaffected

July 3 - Standard & Poor's Ratings Services said today that the Public
Utilities Commission of Ohio's decision to transition Ohio Power Co.
(BBB/Stable/--), a subsidiary of American Electric Power Co. Inc.
(BBB/Stable/A-2), to full retail competition for generation effective no later
than Aug. 8, 2012, has no immediate effect on ratings. However, in the longer
term we believe this change will likely erode credit quality. We would consider
deferrals of changes in capacity prices to be unsupportive of credit quality
because cash flow would decline, and could result in financial measures
inconsistent with the current rating. In addition, the business risk profile of
the company is pressured as it 
transitions to an unregulated model for generation in Ohio.

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