Moody’s changes Mississippi Power to SGL-2

Moody's Investors Service said it upgraded Mississippi Power Co.’s speculative grade liquidity rating to SGL-2 from SGL-4.

The company’s Ba1 corporate family rating, Ba2-PD probably of default rating, Ba1 senior unsecured rating, Ba3 preferred stock rating and SG short-term pollution control revenue bond ratings are unchanged.

The outlook is positive.

"The increase in Mississippi Power's SGL to SGL-2 is prompted by the successful refinancing last week of $900 million of bank term loans that were due on March 31, 2018," Moody’s associate managing director Michael G. Haggarty said in a news release.

"The utility's issuance of $600 million of long-term senior unsecured notes to replace most of these loans has resulted in a considerable improvement in the utility's liquidity position that had deteriorated during the Kemper IGCC plant construction."

Although $300 million of the term loans were rolled over into a new six-month term loan, Moody’s said Mississippi Power expects $400 million to $600 million of income tax refunds over the next 12 to 18 months related to the Kemper IGCC abandonment, which should facilitate the eventual repayment of this bank loan.

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