S&P: Public Service Co. of Oklahoma rating BBB+: outlook stable

S&P: Public Service Co. of Oklahoma rating BBB+: outlook stable

July 02, 2025 - Standard & Poor's (S&P) has upgraded the credit rating of Public Service Co. of Oklahoma (PSCO) to BBB+ from BBB with a stable outlook. This upgrade reflects the company's strong financial position and robust operational performance.

PSCO's upgraded rating comes on the heels of the company's impressive first-quarter 2025 earnings report, which exceeded analysts' expectations. The company reported an earnings per share (EPS) of $1.43 compared to the forecast of $1.40, and its revenue surpassed projections at $3.22 billion against the anticipated $3.11 billion [2].

The stable outlook indicates that S&P expects PSCO's financial position to remain strong and its credit profile to remain stable over the next 12-24 months. The company's liquidity position has also improved significantly, with available funds increasing to $4.6 billion from $2.6 billion at the end of 2024 [2].

S&P noted that PSCO's strong utility fundamentals and consistent dividend payments contribute to its upgraded rating. The company has maintained dividend payments for 55 consecutive years, with 13 straight years of dividend increases, demonstrating remarkable financial stability [2].

Additionally, PSCO's focus on regulated capital investment and energy affordability challenges in Oklahoma has been well-received by S&P. The company's efforts to address these challenges and its potential to unlock additional value through nuclear contracts have been highlighted as key factors in its upgraded rating.

In other recent news, Public Service Enterprise Group Inc. (PSEG), a peer of PSCO, reported strong financial results and received an upgrade from UBS, highlighting the potential for nuclear assets to unlock shareholder value [1].

References:
[1] https://site.financialmodelingprep.com/market-news/fmp-ubs-upgrades-public-service-enterprise-group-to-buy-expects-big-upside-from-nuclear-contracts
[2] https://uk.investing.com/news/analyst-ratings/public-service-enterprise-group-stock-upgraded-by-ubs-on-nuclear-potential-93CH-4158967