Fitch gives Metropolitan Edison notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Metropolitan Edison Co.'s senior unsecured notes.

The long-term issuer default rating is BBB.

The outlook is positive.

Metropolitan Edison is a wholly owned operating utility subsidiary of FirstEnergy Corp. (BBB-/positive).

Proceeds from the offering will be used to refinance existing debt including borrowings under FirstEnergy's regulated utility money pool and its revolving credit facility.

“ME's ratings and positive rating outlook reflect the distribution utility's relatively low business risk profile and the credit supportive regulatory environment in Pennsylvania, including constructive outcomes in its last two base rate case proceedings via commission-approved settlement agreements,” the agency said in a news release.

“In addition, the ratings and positive outlook consider the utility's strong underlying credit metrics, low leverage and linkage with its ultimate corporate parent, FirstEnergy Corp.”

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