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Otter Tail Corporation’s (OTTR) ratings reflect the predictable earnings and cash flows from the company’s regulated utility subsidiary, Otter Tail Power Company (OTP; BBB/Stable) and considers challenges at its economically sensitive manufacturing businesses. Due to the risks inherent in the diversified business portfolio, ���������ֳ� rates OTTR one notch below its regulated subsidiary OTP. OTTR’s Issuer Default Rating (IDR) of ‘BBB-’ takes into consideration the company’s business mix, including a small regulated electric utility serving a rural service territory and two relatively small manufacturing industrial business segments that operate in fragmented, competitive markets. OTP is the main driver of consolidated earnings and cash flows and comprised 72% of consolidated EBITDAR for the LTM ending June 30. The contribution of earnings from OTTR’s non-regulated operations accounted for the remainder as the negative impacts of the coronavirus pandemic and slowing sales at its plastics and metal manufacturing businesses were mitigated by O&M expense reductions. ���������ֳ� expects the company will continue to successfully scale these businesses with changing market conditions. ���������ֳ� also expects OTTR’s business mix to return to historical levels and the utility segment to represent up to three quarters of consolidated earnings due to increased utility investments.