Financial Strength

Credit Ratings Summary

NextEra Energy remains focused on maintaining its strong credit ratings.

	S&P	Moody's	Fitch
NextEra Energy
Corporate credit rating	A-	Baa1	A-
Outlook	Stable	Stable	Stable
Florida Power & Light
Corporate credit rating	A	A1	A
First mortgage bonds	A+	Aa2	AA-
Senior unsecured	A	A1	A+
Tax-exempt bonds⁽¹⁾	A-1	VMIG-1/P-1	F1
Commercial paper	A-1	P-1	F1
Outlook	Stable	Stable	Stable
Capital Holdings
Corporate credit rating	A-	Baa1	A-
Debentures	BBB+	Baa1	A-
Junior subordinated debentures (hybrids)	BBB	Baa2	BBB
Commercial paper	A-2	P-2	F2
Outlook	Stable	Stable	Stable

1) Although FPL’s outstanding tax-exempt bonds have long-dated maturities, the corresponding interest rates are variable and generally reset on a daily basis. As such, FPL’s short-term rating is applicable for these tax-exempt bonds. At FPL's election, a portion or all of the bonds may be adjusted to a long-term interest rate, at which time FPL’s long-term rating would be applicable.

“In an industry that has pushed up leverage over the last decade, we have sustained our balance sheet. How have we sustained our balance sheet? We focused on our 70/30 business mix. We focused on project diversity. We don't bet the farm on any single project, and we never lose sight of the fact that customer credit quality matters.⁽¹⁾”

-Brian Bolster, Chief Financial Officer, NextEra Energy, Inc.

1) NextEra Energy, Inc. Investor Conference, June 11, 2024

"Our strong balance sheet is core to everything we do, and we won't compromise it. These advantages are why we have consistently delivered for customers and shareholders while leading what's possible in power.⁽¹⁾"

-John Ketchum, Chief Executive Officer, NextEra Energy, Inc.

1) NextEra Energy, Inc. Investor Conference, June 11, 2024

NextEra Energy’s rating ranks within the top third of all S&P 500 Companies.

Constituents of the S&P 500⁽¹⁾


No. of Entities
AAA	2	#ffffff
AA+	3	#ffffff
AA	3	#ffffff
AA-	13	#ffffff
A+	17	#ffffff
A	37	#ffffff
A-	66	#0c2739
BBB+	101	#ffffff
BBB	111	#ffffff
BBB-	45	#ffffff
BB+	23	#ffffff
BB	8	#ffffff
BB-	8	#ffffff
B+	6	#ffffff
B	0	#ffffff
B-	0	#ffffff
CCC+	0	#ffffff
CCC	0	#ffffff
CCC-	0	#ffffff
Not Rated	60	#ffffff

1) Source: S&P Global Ratings; Foreign Currency Long-Term Issuer Credit Ratings as of January 24, 2024

Of our 123 U.S. electric utility peers, only 15 companies have higher credit ratings than NextEra

U.S. Electric Utilities⁽¹⁾


Group	U.S. Publicly-Traded Electric Utility Holding Companies
AAA	0
AA+	0
AA	0
AA-	0
A+	0
A	1
A-	6
BBB+	9
BBB	5
BBB-	1
BB+	1
BB	1
BB-	1
B+	0
B	0
B-	1
CCC+	0
CCC+	0
CCC-	0
CC	0


Group	U.S. Electric Utility Operating Companies
AAA	0
AA+	0
AA	0
AA-	1
A+	3
A	11
A-	45
BBB+	39
BBB	15
BBB-	3
BB+	1
BB	4
BB-	1
B+	0
B	0
B-	0
CCC+	0
CCC+	0
CCC-	0
CC	0

1) Source: S&P Capital IQ; credit ratings as of January 24, 2024

Credit Expectations

S&P-ADJUSTED FFO-TO-DEBT
MOODY’S-ADJUSTED CFO-PRE-WC-TO-DEBT
FITCH-ADJUSTED FFO ADJUSTED LEVERAGE

S&P-ADJUSTED FFO-TO-DEBT

S&P-ADJUSTED FFO-TO-DEBT⁽¹⁾


Credit Expectations	FFO/Debt	Downgrade Threshold	Color
2019	22.8%		#007db6
2020	23.0%		#007db6
2021	21.8%		#007db6
2022	19.2%		#007db6
2023	18.4%		#007db6
2024F⁽²⁾	18.0%	18	#007db6

Downgrade Threshold

1) Forecast metrics are based on NextEra Energy's interpretation of the credit metric methodologies, which can be found on each agency's respective website

2) The red line above indicates NextEra Energy’s downgrade threshold of 18% at S&P

MOODY’S-ADJUSTED CFO-PRE-WC-TO-DEBT

MOODY’S-ADJUSTED CFO-PRE-WC-TO-DEBT⁽¹⁾


Credit Expectations	MOODY’S-ADJUSTED CFO-PRE-WC-TO-DEBT	Downgrade Threshold	Color
2019	19.9%		#007db6
2020	20.0%		#007db6
2021	17.4%		#007db6
2022	18.4%		#007db6
2023	18.7%		#007db6
2024F⁽²⁾	17.0%	17	#007db6

Downgrade Threshold

1) Forecasted metrics are based on NextEra Energy's interpretation of the credit metric methodologies, which can be found on each agency's respective website

2) The red line above indicates NextEra Energy’s downgrade threshold of 17% at Moody's

FITCH-ADJUSTED FFO ADJUSTED LEVERAGE

FITCH-ADJUSTED FFO ADJUSTED LEVERAGE⁽¹⁾


Credit Expectations	FITCH-ADJUSTED FFO ADJUSTED LEVERAGE	Downgrade Threshold	Color
2019	4.00		#007db6
2020	3.70		#007db6
2021	4.20		#007db6
2022	4.36		#007db6
2023	4.30		#007db6
2024F⁽²⁾	4.50	4.5	#007db6

Downgrade Threshold

1) Forecasted metrics are based on NextEra Energy's interpretation of the credit metric methodologies, which can be found on each agency's respective website

2) The red line above indicates NextEra Energy’s downgrade threshold of 4.5x at Fitch

Through its solid balance sheet, NextEra Energy delivers credit metrics that position it well within its current credit rating categories.

S&P	A-Range	Actual 2023⁽¹⁾	2024 Target
FFO/Debt	13%-23%	18.4%	>18%
Moody's	Baa Range	Actual 2023^(1,2,3,4)	2024 Target
CFO Pre-WC/Debt	13%-22%	18.7%	>17%
CFO-Div/Debt	9%-17%	12.3%	>10%
Fitch	A Midpoint	Actual 2023^(1,2,4)	2024 Target
Debt/FFO	3.5x	4.3x	<4.5x
FFO/Interest	5.0x	5.1x	>5.0x

1) Based on application of each credit rating agency’s respective methodologies for financial statement adjustments and ratio calculations
2) Includes adjustment for the off-credit treatment of NextEra Energy Capital Holdings (NEECH) debentures related to NextEra Energy’s outstanding equity units pre-settlement of the underlying equity forward contract ($2,000 MM) through a reduction of total debt
3) Includes adjustments for the deconsolidation and off-credit treatment of Energy Resources’ renewable generation projects financed with nonrecourse debt (NRD); CFO pre-WC and FFO are reduced by $179 MM, which is the net of (a) the distributable cash flows available to NEECH related to Energy Resources’ renewable NRD ($739 MM), less (b) those projects’ EBITDA contribution ($918 MM); total debt is reduced by Energy Resources’ outstanding renewables NRD balance ($7,276 MM)
4) Includes adjustment for cash and equivalents at December 31, 2023 available to repay outstanding commercial paper and other upcoming short-term debt maturities, reducing debt by $2,609 MM

Peer Comparison of Key Metrics

NextEra Energy is a leader amongst its peers in many Key Financial Metrics, which includes Operating Efficiency and Recurring EBITDA per Employee.

S&P-Adjusted FFO-to-Debt
Moody’s-Adjusted CFO pre-WC-to-Debt
Fitch-Adjusted FFO Adjusted Leverage
Operating Efficiency
Recurring EBITDA per Employee

S&P-Adjusted FFO-to-Debt

S&P-Adjusted FFO-to-Debt⁽¹⁾


S&P-Adjusted FFO-to-Debt		Color
NEE (A-)	18.4%	#30a310
Peer A (BBB+)	16.2%	#007db6
Peer B (A-)	15.6%	#007db6
Peer C (BBB+)	14.8%	#007db6
Peer D (BBB)	14.3%	#007db6
Peer E (BBB+)	14.1%	#007db6
Peer F (BBB+)	13.3%	#007db6
Peer G (BBB+)	12.9%	#007db6
Peer H (BBB+)	12.3%	#007db6
Peer I (BBB+)	10.8%	#007db6
Peer J (A-)	8.9%	#007db6

1) Source: S&P Capital IQ; data as of December 31, 2023

Moody’s-Adjusted CFO pre-WC-to-Debt

Moody's Adjusted CFO Pre-WC/Debt⁽¹⁾


Moody's Adjusted CFO Pre-WC/Debt		Color
NEE (Baa1)	19.0%	#30a310
Peer A (Baa1)	19.0%	#007db6
Peer B (Baa2)	15.2%	#007db6
Peer C (Baa1)	15.0%	#007db6
Peer D (Baa2)	14.8%	#007db6
Peer E (Baa2)	14.5%	#007db6
Peer F (Baa2)	14.3%	#007db6
Peer G (Baa2)	13.2%	#007db6
Peer H (Baa2)	12.8%	#007db6
Peer I (Baa2)	12.6%	#007db6
Peer J (Baa1)	10.6%	#007db6

1) Source: Moody’s Investors Service; data as of December 31, 2023

Fitch-Adjusted FFO Adjusted Leverage

Fitch-Adjusted FFO Adjusted Leverage⁽¹⁾


Fitch-Adjusted FFO Adjusted Leverage		Color
NEE (A-)	4.3x	#30a310
Peer A (BBB+)	4.5x	#007db6
Peer B (BBB+)	5.2x	#007db6
Peer C (BBB+)	5.4x	#007db6
Peer D (BBB)	6.0x	#007db6
Peer E (BBB+)	6.0x	#007db6
Peer F (BBB+)	6.5x	#007db6
Peer G (BBB+)	6.5x	#007db6

1) Source: Fitch Connect; data as of December 31, 2023

Operating Efficiency

EBITDA Margin⁽¹⁾


Operating Efficiency		Color
NEE	58%	#30a310
Peer A	50%	#007db6
Peer B	46%	#007db6
Peer C	45%	#007db6
Peer D	43%	#007db6
Peer E	39%	#007db6
Peer F	37%	#007db6
Peer G	37%	#007db6
Peer H	36%	#007db6
Peer I	35%	#007db6

Data as of December 31, 2023

1) EBITDA Margin = EBITDA / Revenues

Recurring EBITDA per Employee

Recurring EBITDA per Employee⁽¹⁾


Recurring EBITDA per Employee		Color
NEE	966	#30a310
Peer A	529	#007db6
Peer B	517	#007db6
Peer C	469	#007db6
Peer D	454	#007db6
Peer E	441	#007db6
Peer F	432	#007db6
Peer G	417	#007db6
Peer H	411	#007db6
Peer I	365	#007db6
Peer J	356	#007db6

1) Data as of December 31, 2023

Off-Credit Debt Adjustments

The credit rating agencies ascribe different levels of equity content for the various structures contained within NextEra Energy’s capital structure. Additionally, the rating agencies make various adjustments for non-recourse debt.

		S&P	Moody’s	Fitch
Hybrids	Equity units (senior debt host)	100%	100%⁽¹⁾	0%⁽¹⁾
Hybrids	Jr. subordinated debentures (hybrids)	50%	50%	50%
Non-recourse debt	Project debt - renewables (wind, solar and battery storage)	100%	100%⁽²⁾	100%
Non-recourse debt	Tax equity (differential membership interest)	not considered debt	not considered debt	not considered debt

1) Although published metrics do not include adjustments to remove outstanding equity unit host debentures, Moody’s and Fitch ‘look through’ the impact, effectively rating NextEra Energy to credit metrics reflecting full equity credit

2) In rating committee, Moody’s includes an alternate view of NextEra Energy’s credit metrics with renewables non-recourse project debt treated as off-credit