PNW · 8-K · 20260807PR000044

Credit Ratings and Leverage

PINNACLE WEST CAPITAL CORP · 2026-08-07 · Importance 13 · Surprise 6

As of July 31, 2026, Pinnacle West’s senior unsecured ratings were Baa2 from Moody’s, BBB+ from S&P, and BBB from Fitch, with stable outlooks. APS held higher or equal ratings of Baa1 from Moody’s, BBB+ from S&P, and BBB+ from Fitch, also with stable outlooks. Pinnacle West targets long-term funds-from-operations-to-debt of 14%-16%, with the midpoint providing more than 100 basis points of cushion above Moody’s threshold. The company also targets holding-company debt at a mid-teens percentage of total company debt and APS equity capitalization above 50%.

Key facts

• PNW target FFO/Debt range over the long-term: 14%-16% source
• APS targets maintaining APS capital structure at greater than 50% equity source
• Embedded long-term cost of debt in 2025 rate case positions: 4.26% source
• Ratings as of July 31, 2026: APS Moody’s Baa1, S&P BBB+, Fitch BBB+; Pinnacle West Moody’s Baa2, S&P BBB+, Fitch BBB source