Fitch gives FPL units, debentures A

Fitch Ratings said it has assigned an A rating to FPL Group's issue of $350 million - potentially up to $402.5 million - of equity units and the same amount of 8.375% senior unsecured debentures of FPL Group Capital maturing June 1, 2014.

Each unit will consist of a forward equity purchase contract and senior debentures of FPL Group Capital, the agency said, adding that the debenture portion is rated the same as other outstanding senior unsecured debt of FPL Group Capital.

Consistent with Fitch's hybrid rating criteria, the agency said it has initially assigned a class A designation to the equity units, indicating that all of the units' value will be allocated to debt in Fitch's review of the corporate capital structure, reflecting the senior status of the debentures used as collateral for the transaction and the absence of an option to defer interest payments.

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