Barclays downgrades NextEra Energy Partners to Underweight on limited options

Barclays downgraded NextEra Energy Partners to Underweight from Equal Weight with a price target of $25, down from $32. With limited debt capacity should the company want to stay within its credit ratings, and an “extremely high” payout ratio of 95%, NextEra has limited potential options outside a distribution cut, with a reduction of at least 45% necessary, to pay off its remaining convertible equity portfolio financings, the analyst tells investors in a research note.