Fitch Affirms Nextera on Acquisition; Hawaiian Electric on Watch Positive
NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the 'A-' long-term IDR for Nextera Energy, Inc. (Nextera) following yesterday's announcement of a definitive agreement to acquire Hawaiian Electric Industries, Inc. (HEI) The transaction excludes HEI's banking subsidiary. The Rating Outlook for Nextera is Stable.
Fitch views HEI acquisition as moderately positive for Nextera driven by modest increase in earnings from regulated businesses, predominant use of equity to finance the acquisition, and attractive regulated investment opportunities at HEI's utility. That said, Fitch's view is somewhat tempered by structural issues with th