Xcel Energy 2009 Annual Report Download - page 88

Credit Ratings — Access to reasonably priced capital markets is dependent in part on credit and ratings. The following
ratings reflect the views of Moody’s, Standard & Poor’s, and Fitch. A security rating is not a recommendation to buy,
sell or hold securities, and is subject to revision or withdrawal at any time by the rating agency.
As of Feb. 12, 2010, the following represents the credit ratings assigned to various Xcel Energy companies:
Company Credit Type Moody’s Standard & Poor’s Fitch
Xcel Energy ...................................... Senior Unsecured Debt Baa1 BBB BBB
Xcel Energy ...................................... Commercial Paper P-2 A-2 F2
NSP-Minnesota .................................... Senior Unsecured Debt A3 BBBA
NSP-Minnesota .................................... Senior Secured Debt A1 A A
NSP-Minnesota .................................... Commercial Paper P-2 A-2 F1
NSP-Wisconsin .................................... Senior Unsecured Debt A3 A- A
NSP-Wisconsin .................................... Senior Secured Debt A1 A A
PSCo .......................................... Senior Unsecured Debt Baa1 BBBA-
PSCo .......................................... Senior Secured Debt A2 A A
PSCo .......................................... Commercial Paper P-2 A-2 F2
SPS ........................................... Senior Unsecured Debt Baa1 BBBBBB
SPS ........................................... Commercial Paper P-2 A-2 F2
Moody’s highest credit rating for debt is Aaa and lowest investment grade rating is Baa3. Both Standard & Poor’s and
Fitch’s highest credit rating for debt are AAA and lowest investment grade rating is BBB-. Moody’s prime ratings for
commercial paper range from P-1 to P-3. Standard & Poor’s ratings for commercial paper range from A-1 to A-3.
Fitch’s ratings for commercial paper range from F1 to F3. A security rating is not a recommendation to buy, sell or
hold securities. Such rating may be subject to revision or withdrawal at any time by the credit rating agency and each
rating should be evaluated independently of any other rating.
In August 2009, Moody’s upgraded the majority of the senior secured debt ratings of investment-grade regulated
utilities by one notch. The senior secured ratings for NSP-Minnesota and NSP-Wisconsin were raised to A1 from A2,
and the senior secured rating for PSCo was raised to A2 from A3. In June 2009, S&P revised the outlook on Xcel
Energy Inc. and its regulated subsidiaries to Positive from Stable.
In the event of a downgrade of its credit ratings to below investment grade, Xcel Energy may be required to provide
credit enhancements in the form of cash collateral, letters of credit or other security to satisfy all or a part of its
exposures under guarantees outstanding. See a list of guarantees at Note 14 to the consolidated financial statements.
Xcel Energy has no explicit credit rating requirements or hard triggers in its debt agreements.
Money Pool — Xcel Energy received FERC approval to establish a utility money pool arrangement with the utility
subsidiaries, subject to receipt of required state regulatory approvals. The utility money pool allows for short-term
investments in and borrowings from the utility subsidiaries and investments from the Holding Company to the utility
subsidiaries at market-based interest rates. The money pool balances are eliminated during consolidation.
The utility money pool arrangement does not allow borrowings to the Holding Company. NSP-Minnesota, PSCo and
SPS participate in the money pool pursuant to approval from their respective state regulatory commissions.
NSP-Wisconsin does not participate in the money pool.
The borrowings or investments outstanding at Dec. 31, 2009, and the approved short-term borrowing limits from the
money pool are as follows:
Borrowings Total Borrowing
(Investments) Limits
(Millions of Dollars)
NSP-Minnesota ............................................. $ (7) $250
PSCo ................................................... 84 250
SPS .................................................... (77) 100
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