Fitch: Alabama Power notes A+

Fitch Ratings said it assigned an A+ rating to Alabama Power Co.’s issuance of $550 million series 2017A 2.45% senior notes due March 30, 2022.

The outlook is stable.

The series 2017A notes are senior, unsecured obligations of Alabama Power and will rank equally with all other unsecured and unsubordinated obligations of the company and junior to all secured indebtedness, Fitch said.

Alabama Power does not have any outstanding secured debt, the agency said.

The proceeds from the offering will be used by the company to repay all or a portion of the outstanding short-term debt and for general corporate purposes, including the company's continuous construction program, Fitch said.

The ratings reflect a belief that the company will continue to generate strong credit metrics over the next two years, driven by a gradual improvement in industrial sales and potential rate increases, the agency said.

Fitch also said it views Alabama regulations to be constructive.

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