Vistra (VST) +0.5% post-market Tuesday after S&P upgraded its long-term rating to BBB- from BB+, saying the company’s risk profile was raised by a deal to sell power from a nuclear plant, its purchase of natural gas assets, and strong hedging of future production.
Vistra’s (VST) exposure to fluctuating wholesale power prices is modest, and ~96% of expected generation for 2026 is hedged, S&P said in its upgrade, according to Bloomberg.
More than a third of Vistra’s (VST) capacity is in the PJM grid that spans from Chicago to Washington, D.C., where S&P sees strong tailwinds because of data center activity.
Vistra (VST) shares have more than quadrupled since the start of 2024, as investors have sought positions in companies that own power plants capable of feeding energy-hungry data centers, but power stocks have dropped in recent weeks on concerns that new data center deals may be slowing.