Fitch rates Florida Power bonds AA-

Fitch Ratings said it assigned an AA- rating to Florida Power & Light Co.'s issue of $500 million 3.25% series first mortgage bonds due June 1, 2024.

The outlook is stable.

The company plans to use the net proceeds, along with cash on hand, to repay all or a portion of a $300 million term loan that matures on June 30, 2014, a portion of its outstanding commercial paper borrowings and for other general corporate purposes.

Fitch said Florida Power's ratings reflect the predictable nature of cash flows from regulated electric operations, a favorable 2012 rate order that provides for at least four years of regulatory certainty, recovering electric sales in its service territory after a prolonged trough, management focus on O&M cost containment that is expected to drive returns close to the upper end of the authorized ROE range and a strong balance sheet and liquidity profile.

The ratings also reflect high capex investments over 2014-2016 as the utility spends on new generation and other infrastructure improvements, the agency said.

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