FirstEnergy Lowered on Aggressive Borrowing

Register, or to view the article

On November 23, 2020, FirstEnergy Corp. and some of its regulated subsidiaries borrowed about $2 billion in the aggregate under its revolving credit facilities, leaving about $1.3 billion of remaining availability. Consequently, on November 24, S&P Global Ratings lowered its issuer credit rating on the Company to BB from BB+. Although the ratings agency believes the Company's decision to significantly increase its borrowings under its revolving credit facility demonstrates prudent risk management given the unique challenges the Company is facing, it is also an acknowledgement that the Company may not have consistent access to the capital markets.

Read more Bankruptcy News