On August 29, 2025, Moody’s lowered the credit rating of Otter Tail Power Company, a utility subsidiary of Otter Tail Corporation. This downgrade reflects concerns regarding the company's financial profile.
Moody's cited Otter Tail Power Company's higher spending on projects and increased borrowing as the primary reasons for the credit rating reduction. Such factors can impact a utility's financial strength and its ability to access capital markets on favorable terms.
The credit rating adjustment for the utility subsidiary is a material development for Otter Tail Corporation, as the Electric segment is a foundational part of its diversified business model and relies on stable financing for its significant capital expenditure plans.
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