Fitch rates Arizona Public Service bonds BBB+

Fitch Ratings said it assigned a BBB+ rating to Arizona Public Service Co.'s issuance of $100 million 4.5% coupon senior unsecured bonds due April 1, 2042.

The bonds were issued under a reopening of the original indenture of existing $325 million of unsecured bonds issued on Jan. 13, 2012.

The proceeds will be used to reduce short-term borrowing and for general corporate purposes.

The outlook is stable.

The ratings reflect the company's ability to control operating costs, low leverage and its large capital expenditure program, including environmental upgrades at coal plants, Fitch said.

The stable outlook considers the stable earnings and cash flows of Arizona Public's regulated utility operations and its solid liquidity position, the agency said.

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