Fitch awards Southern Co. better outlook
ATLANTA — Fitch Ratings has revised the rating outlooks of the parent company of Mississippi Power, Southern Company (Southern; Fitch Issuer Default Rating [IDR] of ‘A’), and its subsidiary, Georgia Power Company (GPC; IDR of ‘A’) to “stable” from “negative.” In addition, the ratings of both issuers are affirmed.
Fitch said: “The revision of Southern’s outlook to ‘stable’ reflects the strength and diversity of cash flows and consistent upstream dividend payments from the four regulated utilities and wholesale power business. The supportive rate settlement at GPC, which provides more than 40 percent of Southern’s consolidated EBITDA and significant dividends to the parent, helps stabilize the credit profile of Southern. The outcome of the GPC rate settlement was better than Fitch had previously forecast and provides an immediate boost to the forecasted credit metrics in 2011 and 2012.
“The rating outlooks of all Southern subsidiaries are now ‘stable.’
“Significant delays or cost overruns in either of the two major baseload construction projects – Vogtle and the Mississippi Power Company’s (MPC; Fitch IDR of ‘A’) Kemper IGCC plant could put pressure on the credit ratings or rating outlooks of Southern and subsidiaries and remain the most significant credit risks facing the company in Fitch’s view.
“Rating concerns for Southern include the construction risk associated with two baseload projects, abating but still present economic weakness, and increasingly stringent environmental rules on coal-fired plants that weigh on Southern’s utilities because of the predominance of coal in their generation mix.”
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Lawmakers debating alternative to Medicaid expansion
- UPDATED: House subcommittee tosses discrimination elements from religious freedom bill
- Chris McDaniel gets a thank you note from Travis Childers
- Senate passes teacher pay raise legislation
- Nehi Bottling Company has been a Cleveland fixture for 85 years
- States settle with manufacturers in DRAM price-fixing case
- Pickering collects more money from failed beef plant project
- White House hotel making comeback in Biloxi
- Reactive Surfaces files lawsuit against Toyota in patent dispute