Correction: Fitch Upgrades MS Power; Affirms Southern Company, AL Power & GA Power.

NEW YORK -- (This is an amended version of a press release issued earlier today and contains a corrected short-term rating of 'F1+' for Georgia Power.)

Fitch Ratings has upgraded the ratings of Mississippi Power Company (MPC) and affirmed the ratings of the Southern Company (SO), Georgia Power Company (GPC), Alabama Power Company (APC), and SOs financing vehicles, Southern Company Capital Funding Inc. and Southern Company Funding Corp. The Rating Outlook for all of these issuers are Stable. A full description of the rating actions is shown below. Separately on April 13, 2004, Fitch affirmed the ratings of Gulf Power Company.

The upgrade of the ratings of MPC to 'AA-' is supported by strong credit protection measures that are consistent with, or high for, the 'AA-' senior unsecured rating category, low operating costs, and a recent decision from the Mississippi Public Service Commission (MPSC) that improves credit prospects. On May 25, 2004, the MPSC approved MPC's request to use a forward test year in its performance evaluation plan for setting base rates with annual rate changes capped at 4%, a step that is anticipated to further enhance the stability of future cash flow. Additionally, the order transferred the remaining 25% of Plant Daniel Units 3 and 4 into jurisdictional rate base effective Jan. 1, 2004, which provides MPC with a low cost source of capacity to meet future generation needs. MPC also benefits from an environmental cost recovery clause, which supports the recovery of environmental compliance related costs. MPC's ratio of adjusted debt to EBITDAR was about 2.4 times (x) for the twelve months ended March 31, 2004, (including adjustments for the net present value of future lease obligations and to accord 65% equity credit to trust preferred securities). The EBITDAR to interest expense ratio (as adjusted) was approximately 6.7x for the twelve months ended March 31, 2004. The credit ratios of MPC are the strongest among the issuers in the SO group. Credit concerns include moderate wholesale and industrial market concentration.

The affirmation of the ratings of APC reflects the expectation of continued financial strength and stability and the constructive state regulatory environment in AL. Credit risks include growing environmental spending needs with no automatic pass-through mechanism for these expenditures and an annual ceiling of 3% on rate increases. The rating also considers APC's industrial load concentration. The debt to EBITDA ratio of APC is about 2.8x (adjusted to assign 65% equity credit to trust preferred securities). The EBITDA to interest expense ratio of APC has improved each year since 2001 and was nearly 6x at the end of 2003.

The affirmation of the ratings of GPC considers the utility's steady performance and credit measures. GPC benefits from low customer rates and balanced state regulation. The ratio of total debt to EBITDA has increased moderately over the past five years but is around 2.8x currently. The EBITDA to interest expense ratio was nearly 6.5x for the twelve months ending March 31, 2004. The outcome of the periodic three-year rate filing that will be made to the Georgia Public Service Commission in July 2004, with a decision anticipated in December 2004, is uncertain, although prospects for a settlement seem reasonable. An additional concern is the growing capital spending needs for environmental compliance; GPC does not have an automatic pass-through mechanism for these expenditures and will need to seek periodic rate adjustments to recover environmental compliance investments.

The affirmation of the ratings of SO reflects the strong financial condition of the consolidated entity, the access to stable upstream dividends from the operating subsidiaries, and the relatively low business risk of the group. Debt issued at the holding company level comprises only about 7% of the consolidated debt of $12.3 billion of SO. A growing focus of investment for SO over the past three to four years is its competitive generation subsidiary Southern Power Company (SPC; senior unsecured rating 'BBB+', Stable Outlook). While SPC's business risk is greater than that of the regulated utility subsidiaries, SPC's cash flows are more stable than those of many other generation companies due to its high proportion of long-term power sales contracts tied to specific power units and other long-term contracts to supply a portion of the full requirements of load serving entities. Contracts are with highly rated counterparties. SPC's debt is non-recourse to SO, with the exception of completion guarantees that have been provided by SO.

SO is a registered public utility holding company that owns APC, GPC, MPC, Gulf Power Company, and Savannah Electric and Power, each of which is an operating public utility company. The vertically integrated utilities supply electricity in AL, GA, MS, FL, and GA, respectively, each of which remain fully regulated states. In addition to the utilities, SO owns SPC, a wholesale generation affiliate that operates in the southeast region and smaller subsidiaries that are engaged in other businesses. Rating Actions are as follows:

Ratings upgraded:

Mississippi Power Company

-- Senior secured debt to 'AA' from 'AA-';

-- Senior unsecured debt to 'AA-' from 'A+';

-- Preferred/trust preferred securities to 'A+' from 'A';

-- Affirmed short-term rating 'F1+'.

Rating Outlook is Stable

Ratings Affirmed:

Southern Company

-- Senior unsecured debt 'A';

-- Commercial paper 'F1'.

Southern Company Funding Corp.

-- Commercial paper 'F1'.

Southern Company Capital Funding

-- Senior unsecured debt 'A';

-- Trust preferred securities 'A-'.

Rating Outlook is Stable

Georgia Power Company

-- Senior unsecured debt 'A+';

-- Preferred/trust preferred securities 'A';

-- Variable-rate PCRBs 'F1+';

-- Commercial paper 'F1+'.

Rating Outlook is Stable

Alabama Power Company

-- Senior secured debt 'A+';

-- Senior unsecured debt 'A';

-- Preferred/trust preferred securities 'A-';

-- Commercial paper 'F1'.

Rating Outlook is Stable