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S&P cuts its corporate credit rating for Duke Energy (DUK +1.6%) to BBB+ from A- with a...

S&P cuts its corporate credit rating for Duke Energy (DUK +1.6%) to BBB+ from A- with a negative outlook, citing lack of transparency and heightened regulatory risk around the CEO transition. DUK responds: "The new Duke Energy has unmatched financial and operational scope and scale and the strength to manage through a time of transition in the utility industry."
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Comments (7)
  • jimler
    , contributor
    Comments (3) | Send Message
     
    I think S&P was the same organization that downgraded the US Government and called all the subprime mortgage debt Investment Grade. DUK is the largest utility in the US, plenty of cash on the balance sheet and no reason for the downgrade.
    26 Jul 2012, 12:45 PM Reply Like
  • old crank
    , contributor
    Comments (20) | Send Message
     
    Hugh McColl published a piece in the Charlotte Observer, opining that the NC Utilities Commission had no business interfering with Duke Energy's internal personnel matters. S&P should know better than to give their opinion any weight.
    26 Jul 2012, 04:49 PM Reply Like
  • theonlyforce
    , contributor
    Comment (1) | Send Message
     
    Totally agree with jimier. these rating agencies and stock analysts are bogus - there should be an agency or analyst that grades these agencies and stock analysts based upon how the company performs after ratings or opinions are made. BTW, it's 2:27PM now, and perhaps DUK will trend higher by another 2% if S&P further downgrades its credit!
    26 Jul 2012, 04:58 PM Reply Like
  • WONDER549
    , contributor
    Comment (1) | Send Message
     
    Wow, they downgrade the credit rating and the stock goes up 2%. Go figure?
    26 Jul 2012, 06:00 PM Reply Like
  • MexCom
    , contributor
    Comments (3057) | Send Message
     
    The rating caused a sharp rally in the stock. They are rating themselves. Please - give us another downgrade!
    26 Jul 2012, 06:02 PM Reply Like
  • Theclayworks
    , contributor
    Comment (1) | Send Message
     
    The most important element in a merger is the egos of the principals, even more than the balance of money in the merger. When this goes wrong, ( newk plant dishonestly reported by Progerss as only minor and short term fix), then there is a problem for Duke. It's going to take time and money to correct. It winds up not so easy a fit.
    26 Jul 2012, 06:08 PM Reply Like
  • romilar
    , contributor
    Comments (689) | Send Message
     
    Downgrade deserved or not,the fact remains...the demand for what the've got will only increase and the've got as much or more supply than anyone else in these united states.Interesting perspective on the reasoning for the downgrade though.It could also be concluded that Godzilla will not do well in cold weather,because after all,he's just a lizzard.....
    26 Jul 2012, 08:54 PM Reply Like
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