Fitch: Alabama Power notes A+

Fitch Ratings said it assigned an A+ rating to Alabama Power Co.'s issuance of $400 million series 2012B 0.550% senior notes due Oct. 15, 2015.

The outlook is stable.

The notes are senior, unsecured obligations of the company and will rank equally with all other unsecured and unsubordinated obligations and junior to all secured indebtedness, which stood at about $153 million as of June 30, Fitch said.

The proceeds will be used for redeeming series 2007C 6.00% senior insured monthly notes due Oct. 15, 2037 and for general corporate purposes, including the continuous construction program at the company, the agency said.

The ratings reflect consistent financial performance and strong credit metrics expected over the next three years driven by a gradual improvement in industrial sales and timely recovery of costs through its regulatory mechanisms, Fitch said.

Rating concerns include the company's high reliance on the industrial sector, the agency added.

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