Fitch rates Southern notes A

Fitch Ratings said it assigned a rating of A to the $500 million of notes issued by Southern Co. The new notes will mature on Sept. 1, 2016. The notes are unsecured and rank equally with other unsecured debt.

The outlook is stable.

Proceeds from the new notes will be used to reduce short-term debt and for other general corporate purposes. Fitch expects some of the proceeds will be used for pre-funding a portion of upcoming parent debt maturities.

The ratings of Southern recognize the financial support provided by operating subsidiaries in the form of dividends for the payment of corporate expenses, debt-service and for other business matters and relatively modest parent debt leverage, the agency said.

The key rating concerns include the construction risk associated with the baseload projects the Plant Vogtle nuclear units 3 and 4 and the Kemper IGCC unit as well as economic weakness, the agency added.

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