Southern Co Lands Unsecured Notes Thanks to the Ratepayers

Money out of our pockets is going to pay for “Construction Work In Progress” and that reliable income from ratepayers help Southern Co land generous notes.

press release

Aug. 17, 2011, 10:35 a.m. EDT

Fitch Rates Southern Co.’s $500MM 1.95% 5 Year Notes ‘A’; Outlook Stable

 

NEW YORK, Aug 17, 2011 (BUSINESS WIRE) — Fitch Ratings assigns a rating of ‘A’ to the $500 million of notes issued by Southern Company (Southern, IDR ‘A’). The new notes will mature on Sept. 1, 2016. The notes are unsecured and rank equally with other unsecured debt. Proceeds from the new notes will be used to reduce short-term debt and for other general corporate purposes. Fitch expects some of the proceeds will be used for pre-funding a portion of upcoming parent debt maturities. The Rating Outlook is Stable.

 

Fitch’s ratings of Southern recognize the financial support provided by operating subsidiaries in the form of dividends for the payment of corporate expenses, debt-service, and for other business matters and relatively modest parent debt leverage. The utility subsidiaries derive predictable cash flows from regulated businesses and have limited commodity price risks due to the ability to recover fuel and purchased power through a separate cost tracker. There are also periodic cost adjustment mechanisms for other costs such as environmental spending and construction work in process financing costs that limit regulatory lag. Southern’s ratings also reflect strong liquidity, financial flexibility, and ready access to the capital markets. Southern’s ratios of funds from operations (FFO) interest coverage and FFO to debt were 5.7 times (x) and 21.9%, respectively for the 12 months ended June 30, 2011.

 

Fitch’s key rating concerns include the construction risk associated with two baseload projects: the Plant Vogtle nuclear units 3 and 4 and the Kemper IGCC unit, 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. Rating stability depends on continued regulatory support and successful execution of the construction projects.

 

Additional information available at ‘ http://www.fitchratings.com ‘.

 

Applicable Criteria and Related Research:

 

–‘Corporate Rating Methodology’, Aug. 12, 2011;

 

–‘Utilities Sector Notching and Recovery Ratings’, Aug. 12, 2011.

 

Applicable Criteria and Related Research:

 

Corporate Rating Methodology

 

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229

 

Recovery Ratings and Notching Criteria for Utilities

 

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648449

 

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS . IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY’S PUBLIC WEBSITE ‘ 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 ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE.

 

SOURCE: Fitch Ratings

 

        
        Fitch, Inc. 
        Primary Analyst 
        Sharon Bonelli, +1-212-908-0581 
        Managing Director 
        One State Street Plaza, 
        New York, NY 10004 
        or 
        Secondary Analyst 
        Shalini Mahajan, +1-212-908-0351 
        Director 
        or 
        Committee Chairperson 
        Glen Grabelsky, +1-212-908-0577 
        Managing Director 
        or 
        Media Relations 
        Brian Bertsch, +1-212-908-0549 
        brian.bertsch@fitchratings.com

Fitch Rates Southern Co.’s $500MM 1.95% 5 Year Notes ‘A’; Outlook Stable – MarketWatch.

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About Mississippi Coal
Welcome! It is an honor to have a moment of your day. We are in favor of all forms of energy. We care about the future of this great Nation and seek to expose the corruption behind the Kemper County CO2 capturing experimental Lignite coal Demonstration unit. Our Chief complaint is that the rate payers pay for it in their electric bills. The CO2 capturing does not produce electricity so therefore serves no purpose for the ratepayers. It is a money scam for Mississippi power and Southern Company. Mississippi is first in following the (United Nation's Agenda 21) Kyoto Protocols for the regulation of carbon dioxide, a gas we breathe out of our lungs, by forcing the people to pay for it through energy bills and taxes. Through the process of investigating the Kemper County Coal Plant issue, we feel criminal acts have been committed and that soon FCC violations will be added to the offenses. People are being lied to, deceived, or misled and therefore are fully cooperating with this Lignite experiment. "This blog or any content may contain copyrighted material. Such material is made available for educational purposes, to advance understanding of political pathways, Constitutional infringements, democracy, science, and other issues. This constitutes a 'fair use' of any such copyrighted material as provided for in Title 17 U.S.C. section 107 of the US Copyright Law. This material is compiled and distributed without profit. This blog does not always agree with certain personal views or agendas of the published authors, but we will overlook such views many times in order to present facts, conclusions, and connections for knowledge or clarification. We hope you gain from this critical subject matter of the article/op-ed."

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