Fitch: Alabama Power notes A+

Fitch Ratings said it assigned an A+ rating to Alabama Power Co.'s issuance of $350 million series 2012C 3.850% senior notes due Dec. 1, 2042.

The outlook is stable.

The notes are senior, unsecured obligations of Alabama Power and will rank equally with all other unsecured and unsubordinated obligations of the company and junior to all secured indebtedness, Fitch said.

The proceeds, along with other funds at Alabama Power, will be used for redeeming $500 million series 2007D 4.85% senior notes due Dec. 15, 2012.

The ratings and stable outlook reflect the company's consistent financial performance and strong credit metrics, which are expected to continue over the next three years driven by a gradual improvement in industrial sales and timely recovery of costs through its regulatory mechanisms, Fitch said.

Rating concerns for Alabama Power include its high reliance on the industrial sector, the agency said. A prolonged economic slowdown or a double-dip recession in a stress case could impact Alabama Power's credit metrics, Fitch said.

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