Fitch: Duke Energy Carolinas bonds AA-

Fitch Ratings said it assigned an AA- rating to Duke Energy Carolinas, LLC's (DEC) first and refunding mortgage bonds due 2026.

The outlook is stable.

Net proceeds will be used to repay at maturity $350 million of first and refunding mortgage bonds due Dec. 15, 2016 and to fund capital expenditures and for general corporate purposes.

Fitch said the company’s credit metrics are strong for the rating level.

Over the next two years, the agency expects adjusted debt/EBITDAR, lease-adjusted debt/funds flow from operations (FFO) and FFO fixed-charge coverage to average about 3 times, 3.3 times and 6.5 times, respectively. In each case the metrics are in excess of Fitch's target ratios for the current rating level.

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