Fitch Rates Alabama Power's New $200MM Sr Notes 'A+'; Outlook Stable.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. assigns an 'A+' to the $200 million of 4.85% 2007D senior notes issued by Alabama Power Company Alabama Power Company is a company in the southern United States that provides electricity service to 1.3 million homes, businesses, and industries in the southern two-thirds of Alabama. It is one of four U.S. (APC (1) (American Power Conversion Corporation, West Kingston, RI, www.apcc.com) The leading manufacturer of UPS systems and surge suppressors, founded in 1981 by Rodger Dowdell, Neil Rasmussen and Emanual Landsman, three electronic power engineers who had worked at MIT. ). The notes will mature on Dec. 15, 2012 and rank equally with existing and future unsecured debt of APC. The proceeds from the sale of the notes will be used for general corporate purposes, including the continuous construction program. The Rating Outlook of APC is Stable. The ratings of APC are supported by a relatively low cost coal and nuclear-dominated generation fleet, stable coverage ratios that are consistent with rating category targets, and a constructive state regulatory environment in Alabama. APC benefits from the operational and financial efficiencies gained from an association with Southern Company (Issuer Default Rating of 'A' by Fitch with a Stable Outlook). Fitch's rating concerns relate to the higher than average concentration of industrial customers, lags in the recovery of rising fuel, unanticipated increases in operating and maintenance costs, the susceptibility of the territory to hurricanes, and significant capital spending associated with environmental matters and system growth and reliability. The construction budget for APC is $1.57 billion and $1.58 billion for 2008 and 2009, respectively. The Stable Rating Outlook assumes that APC will use a balanced mix of debt and equity to supplement internal cash generation to satisfy cash requirements. APC is a vertically integrated utility providing electricity to retail customers within its service territory in Alabama and to wholesale companies in the Southeast. It is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the Southern Company. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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