NEW YORK (TheStreet) -- PPL (PPL) shares are up 1.5% to $34.04 today following a note from Moody's (MCO) stating that the company's ratings and outlook are unaffected by its announcement of plans to spinoff its energy supply unit.
PPL announced its intentions to spinoff its powerplant assets earlier this week into a new stand alone publicly traded company called Talen Energy.
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Moody's noted that the transaction is unlikely to affect the ratings of the company's Western Power Distribution business.
"WPD is financed and managed independently of the wider PPL group and as such our ratings analysis reflects its stand-alone credit strength. This partial de-linkage takes into consideration the group's financing arrangements... Overall therefore, Moody's believes that while an improving credit profile of the PPL group is supportive of WPD's credit quality, the ratings remain appropriate," said Moody's Global Credit Research division.
TheStreet Ratings team rates PPL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PPL CORP (PPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."