Fitch Rates Xcel Senior Notes 'BBB+'.CHICAGO -- Fitch fitch: see polecat. assigned a 'BBB+' rating to Xcel Energy Inc.'s (XEL XEL New Carlisle, Quebec, Canada - New Carlisle / via Rail Service (Airport Code) ) $300 million issue of 6.5% senior unsecured notes due 2036. XEL will use proceeds to reduce its approximately $427.5 million of outstanding commercial paper. The Outlook is Stable. XEL's credit ratings are supported by stable, predictable cash flows from low business risk gas and electric utility subsidiaries. Risks include the possibility of unfavorable rate decisions and cost overruns Noun 1. cost overrun - excess of cost over budget; "the cost overrun necessitated an additional allocation of funds in the budget" cost - the total spent for goods or services including money and time and labor on capital projects. The Stable Rating Outlook is based on Fitch's expectation that XEL will continue to focus on increasing its rate base through investments in utility operations with adequate regulatory support. While increased capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. and higher gas and power prices may affect credit ratios adversely in the short term, Fitch expects XEL to recover substantially all of its purchased power, fuel and gas-for-sale costs and to continue to recover costs associated with capital investments. XEL is a utility holding company that serves 3.3 million electric and 1.8 million gas customers across ten states through its four regulated utilities. 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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