Two of the three major agencies have now cut ratings after the Mississippi Public Service Commission denied Mississippi Power a rate increase to pay off debt during construction of its $2.8 billion Kemper County power plant.
Moody’s Investors Service cut its rating on about $1 billion in company debt by a notch last week. It now rates Mississippi Power as A3, still an investment grade. Moody’s also said it had a negative outlook for the future, meaning it could cut grades again.
Fitch Ratings announced a downgrade in July.
Moody’s cited the debt the Southern Co. subsidiary has incurred in building Kemper, as well as the failure to win the $55 million rate increase from the PSC.