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Moody's on June 5 downgraded the ratings outlook to negative from stable for Duke Energy Corp. and subsidiaries Progress Energy Inc. and Duke Energy Progress Inc., with approximately $17 billion of debt securities affected.
Moody's also affirmed the ratings of Duke Energy (A3 senior unsecured), Progress Energy (Baa1 senior unsecured) and Duke Energy Progress (A1 senior unsecured). In addition, the rating agency affirmed the ratings of Duke Energy Carolinas LLC (A1 senior unsecured); Duke Energy Florida Inc. (A3 senior unsecured); Duke Energy Indiana Inc. (A2 senior unsecured); Duke Energy Ohio Inc. (Baa1 senior unsecured); and Duke Energy Kentucky Inc. (Baa1 senior unsecured), all with stable outlooks.
"The negative outlook on Duke's rating reflects consolidated financial metrics that are weak for its current A3 rating and likely to decline slightly over the next few years, persistently high levels of debt at the holding company level, future financing needs for pipeline and other parent company investments, and challenges at some of its international businesses, which the company has decided to retain,"...