Fitch rates Alabama Power notes A+

Fitch Ratings said it assigned an A+ rating to the $200 million of 4.85% 2007D senior notes due Dec. 15, 2012 issued by Alabama Power Co.

The outlook is stable.

The proceeds from the notes will be used for general corporate purposes, including the continuous construction program.

The agency said the ratings are supported by Alabama Power's relatively low-cost coal and nuclear-dominated generation fleet, stable coverage ratios that are consistent with rating category targets and a constructive state regulatory environment in Alabama.

Fitch's rating concerns relate to the higher-than-average concentration of industrial customers, lags in the recovery of rising fuel, unanticipated increases in operating and maintenance costs, the susceptibility of the territory to hurricanes and significant capital spending associated with environmental matters and system growth and reliability.

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