Fitch rates Southern notes A

Fitch Ratings said it assigned an A rating to the Southern Co.’s issuance of $600 million 2.75% series 2015A senior notes due June 15, 2020.

These notes are senior, unsecured obligations of the company.

The outlook is negative.

The proceeds from the issuance will be used to repay a portion of Southern’s outstanding short-term indebtedness, which totaled about $765 million as of June 8, Fitch said, and for other general corporate purposes.

Fitch said it revised the outlook for Southern to negative primarily due to the simultaneous undertaking of two large and complex generation projects by its utility subsidiaries.

Both projects have seen material construction delays and rising regulatory concerns, which weakened the profile of Southern at its current rating level, the agency said.

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