2 Reasons Moody's Lowered Outlook on Regulated Industries

Moody’s lowered its outlook on the U.S. regulated utility sector.

The new outlook is negative, a downward move from the formerly stable outlook. 

3 reasons why the increased financial risk outlook:

• lower cash flow 
• holding company leverage for regulated utilities
• Lower corporate taxes will result in lower cash flows for utilities and higher debt ratios

Utility Dive | Moody’s goes negative on regulated utilities for first time, citing tax law impacts