Fitch Rates Potomac Edison's $100MM 5.80% FMBs 'BBB+'; 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 assigns a 'BBB+' rating to the new $100 million of 5.80% first mortgage bonds (FMBs) to be issued by the Potomac Edison Company (Potomac Ed). The bonds, which will mature on Oct. 15, 2016, are secured by a first priority lien on substantially all real estate, transmission and distribution systems, and franchises of Potomac Ed and rank equally with existing and future senior secured debt. The proceeds of the bonds are expected to be used to fund the repayment at maturity of the $100 million of 5% notes due Nov. 1, 2006. The Rating Outlook is Stable. The ratings of Potomac Ed reflect credit metrics that are strong for the rating category as well as Fitch's concern that cash flow could be adversely affected by rising costs. The highly politicized climate for utilities in Maryland is an additional concern. There is uncertainty regarding the residential market structure and provider of last resort (POLR POLR Provider of Last Resort POLR Path of Least Resistance POLR Pokemon Online Revolution ) power supply obligations and power procurement process following the expiration of the residential generation rate cap and related power purchase contracts in Maryland on Dec. 31, 2008. While the residential generation rate cap and associated power supply contract for the Maryland portion of Potomac Ed's service territory terminate at the end of 2008, Potomac Ed retains residential POLR obligations through 2012. Potomac Ed is an electric utility that engages in the transmission and distribution (T&D) of electric power in Maryland, West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. and Virginia under the name Allegheny Power. 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 Allegheny Energy Allegheny Energy (NYSE: AYE) is a traditional public utility based in the Pittsburgh suburb of Greensburg. It services communities in Western Pennsylvania, Western Maryland, Northern West Virginia, Northwest Virginia. , Inc. Potomac Ed serves approximately 465,800 electric customers in a service area that covers approximately 7,300 square miles and contains a population of approximately one million. For additional information, see Fitch credit analysis dated as of July 19, 2006. 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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