Fitch: New York State Electric notes A-

Fitch Ratings said it assigned an A- rating to New York State Electric & Gas Corp.’s issuance of senior unsecured notes.

The 10-year notes mature Dec. 1, 2026 and rank pari passu with the company’s existing unsecured debt.

Net proceeds will be used to refinance New York State Electric’s $100 million 5.65% senior notes due Dec. 15, 2016, to redeem $96.85 million of its auction rate pollution control obligations on Dec. 19, 2016, to pay down notes payable to affiliates and for general corporate purposes.

Fitch said the ratings primarily reflect the low-risk business profile and stable cash flow of the utility's regulated electric transmission and distribution and natural gas distribution operations. The utility has no commodity exposure and benefits from a decoupling mechanism that eliminates the impact of weather and usage patterns on its electric and natural gas revenues, the agency added.

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