Fitch to Rate Power Marketers

Fortnightly Magazine - June 1 1996
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Fitch Investors Service has developed guidelines to rate electric power marketers The firm estimates this "fastest-growing segment" of the changing electric industry could handle as much as $200 billion in annual sales once full deregulation occurs.

According to Fitch, an investment-grade credit rating for power marketers (em "BBB" or better (em would expand the potential amount and scope of their business and help them avoid restrictive counterparty limits as electricity is traded among firms. A stand-alone rating for subsidiaries would also help limit the impact of the marketer's operations on the parent's capital and credit. Fitch identifies investment-grade power marketers as those with sufficient capital

in an independent firm or support in the form of capital or guarantees from an affiliated company.

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