Fitch rates Georgia Power notes A+

Fitch Ratings said it assigned an A+ to Georgia Power Co.'s $500 million series 2010C 4.75% senior notes due Sept. 1, 2040.

The outlook is negative.

The notes only will be redeemable, in whole or in part, at the option of the company through the make-whole call provision, Fitch said. The notes are unsecured and will rank equally with its other senior unsecured debt.

The proceeds will be used to repay all or part of $250 million series X 5.7% senior notes due Jan. 15, 2045, $125 million series W 6% senior notes due Aug. 15, 2044, $100 million series T 5.75% senior public income notes due Jan. 15, 2044 and $35 million of Savannah Electric and Power Co.'s series G 5.75% senior notes due Dec. 1, 2044, which were assumed by Georgia Power in July 2006, the agency said.

The ratings are supported by the utility's low-risk business, a constructive state regulatory regime, manageable debt maturities and strong operation of predominantly baseload electric generation assets, Fitch said.

Concerns facing Georgia Power include the potential financial stress associated with a large capital expenditure program, risks associated with the undertaking of nuclear plant construction and additional costs imposed by any new environmental compliance regulations, the agency said.

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