Dec 6 Standard & Poor's Ratings Service on
Thursday revised New York's Long Island Power Authority credit
outlook to negative from stable, because of concerns that
lengthy storm-related power outages have created political
obstacles to rate increases.
The rating agency also affirmed its rating on the
authority's A-minus bonds, affecting $6.6 billion of debt.
"The outlook revision reflects our view that protracted
power outages following Superstorm Sandy contribute to a
political climate that diminishes the utility's rate-making and
financial flexibility," said S&P credit analyst David Bodek in a
S&P also said it was concerned about abrupt resignations of
several key LIPA officials in the wake of widespread outages
after Sandy made landfall on Oct. 29.
LIPA's CEO, its board chairman, a trustee and vice president
of customer service quit, S&P said.
"Abrupt leadership departures have created a vacuum that
could hamper LIPA's ability to address the potentially
substantial financial and operational problems Sandy's damage
caused," S&P said.