Fitch rates Alabama Power preferreds A

Fitch Ratings said it assigned a rating of A to the 2 million shares of $50 million 6.50% series non-cumulative preference stock of Alabama Power Co.

Fitch said that proceeds will be used by Alabama Power for general corporate purposes, including the continuous construction program.

The outlook is stable.

According to the agency, the preference stock conforms to Fitch's class E hybrid securities category due to its very junior ranking, absence of events of default or covenants and option to omit dividends with no requirement for cumulative settlement, 100% of the principal will be treated as adjusted equity in Fitch's evaluation of financial leverage for Alabama Power.

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