Dive Summary:

• Standard & Poor’s (S&P) cited “abrupt leadership changes” as the main reason for Duke Energy’s lowered credit rating, saying the changeds have weakened the company’s “business risk profile.”
• The statement from S&P also noted Duke Energy’s impending rate-case increases in North Carolina, as well as questions surrounding an out-of-service Crystal River nuclear plant in Florida.
• Should Duke Energy fail to address the regulatory risks in North Carolina and Florida or unsuccessfully handle its merger with Progress Energy, S&P says even lower ratings in the coming months is a possibility.

From the article:

RALEIGH, N.C. — Standard & Poor’s lowered the rating for Duke Energy Corp. Wednesday, citing the utility’s lack of transparency in connection with the hiring of a new CEO and the consequences of that decision.

The credit-rating agency said the decision to downgrade stems from its view that “abrupt leadership changes at the company have heightened regulatory risk in North Carolina and likely in Florida, significantly weakening the company’s consolidated ‘excellent’ business risk profile under our criteria.”...