NEWS: North American utilities have a ‘deteriorating’ outlook, Fitch Ratings says. 😬

Risky business: This recent update marks a downgrade from the agency’s “neutral” outlook issued in December. Why the demotion? “Rising affordability concerns that are increasing political and regulatory risk for the sector,” Fitch wrote, noting that regulatory pushback to rate increases is piling up quicker (and more broadly) than previously expected.

Shifting back into neutral: For the power industry to return to “neutral,” the agency is looking for 1) signs that affordability concerns are abating and 2) proof that utilities can “recover rising investment needs without materially increasing regulatory lag or weakening credit profiles.”