APS 2012 Annual Report Download - page 92

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68
may be obtained. There is no assurance that these ratings will continue for any given period of time.
The ratings may be revised or withdrawn entirely by the rating agencies if, in their respective
judgments, circumstances so warrant. Any downward revision or withdrawal may adversely affect the
market price of Pinnacle West’s or APS’s securities and/or result in an increase in the cost of, or limit
access to, capital. Such revisions may also result in substantial additional cash or other collateral
requirements related to certain derivative instruments, insurance policies, natural gas transportation, fuel
supply, and other energy-related contracts. At this time, we believe we have sufficient available
liquidity resources to respond to a downward revision to our credit ratings.
Moody’s
Standard & Poor’s
Fitch
Pinnacle West
Corporate credit
rating
Baa2
BBB+
BBB
Commercial paper
P-3
A-2
F3
Outlook
Stable
Stable
Stable
APS
Corporate credit
rating
Baa1
BBB+
BBB
Senior unsecured
Baa1
BBB+
BBB+
Secured lease
obligation bonds
Baa1
BBB+
BBB+
Commercial paper
P-2
A-2
F3
Outlook
Stable
Stable
Stable
Off-Balance Sheet Arrangements
See Note 20 for a discussion of the impacts on our financial statements of consolidating certain
VIEs.
Contractual Obligations
The following table summarizes Pinnacle West’s consolidated contractual requirements as of
December 31, 2012 (dollars in millions):