Fitch rates Alabama Power notes A+

Fitch Ratings said it assigned an A+ rating to Alabama Power Co.'s $700 million of series 2021B 3% senior notes due March 15, 2052.

“Alabama Power's A+ long-term issuer default rating reflects its predictable cash flow generation from regulated electric utility operations and constructive regulatory environment in Alabama. Tax reform, the pandemic, and regulatory lag associated with the construction of a 720 MW combined cycle natural gas plant have adversely affected near-term credit metrics. However, the ability to increase the authorized regulatory equity ratios and focus on O&M cost reduction should provide an offset, in Fitch's view,” the agency said in a press release.

The proceeds will be used for general corporate purposes including the company's continuous construction program.

The outlook is stable.

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