S&P rates American Electric notes BBB-

Standard & Poor's said it assigned an issue-level rating of BBB- to American Electric Power Co. Inc.'s announced senior unsecured notes, series E and F.

The proceeds will be used to retire its existing $245 million of senior unsecured notes and $315 million of junior subordinated notes.

The company's existing senior unsecured debt, which will be redeemed, is rated the same as the BBB corporate credit rating because the company took legal measures to make holding company debt pari passu with the senior unsecured debt at some of its utility subsidiaries, the agency said.

The new senior unsecured debt is rated one notch lower than the corporate credit rating because of the structural subordination, S&P said.

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