S&P revises Otter Tail outlook to stable on capex growth and PVC segment softening
S&P revised Otter Tail's outlook to stable from positive, citing declining credit metrics due to higher capex and softer plastics demand. It affirmed 'BBB' and 'BBB+' ratings for Otter Tail and its subsidiary. S&P projects FFO to debt will drop to 27-30% over two years, down from 55%. The revision reflects increased capex, litigation costs, and moderating non-utility earnings. Otter Tail has $278M in cash and $390M in credit facilities.
