Fitch rates Progress notes BBB

Fitch Ratings said it assigned a BBB rating to Progress Energy, Inc.'s $500 million of 4.4% senior notes due Jan. 15, 2021.

The proceeds will be used, along with cash on hand, to retire $700 million of 7.10% senior notes due March 1, 2011.

Fitch said it affirmed the ratings for Progress and its subsidiaries following the announcement of an agreement to merge with Duke Energy, Inc. in a stock for stock transaction on Jan. 10.

The ratings are supported by similarities between the two companies' business risk and credit profiles as well as standalone credit metrics at Progress that are consistent with Fitch's BBB issuer default rating guidelines, the agency said.

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