JACKSON — Fitch Ratings has assigned a rating of “BBB+” to Entergy Mississippi Inc.’s (EMI’s) $150 million of 6.64 percent series first mortgage bonds due July 1, 2019.
The proceeds of the bonds will be used to repay bank revolving credit facility and corporate money pool borrowings and for working capital and general corporate purposes.
Fitch gave EMI a rating outlook is “stable.”
Fitch wrote: “EMI’s ratings are supported by stable cash flow credit metrics that are consistent with guidelines for the rating category and balanced regulation that includes a formula rate plan that enables EMI to annually adjust rates without a full rate case.
“The State of Mississippi passed a new law that is supportive for cost recovery of new baseload generation in the state. This should minimize lag and reduce cost recovery uncertainty when EMI enters its next baseload construction project.
“Fitch’s rating concerns for EMI include weak industrial demand and below average income in the service territory. In addition, there are production cost allocation issues among Entergy’s utility affiliates.”
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