Fitch cuts Georgia Power

Fitch Ratings said it downgraded the long-term issuer default rating of Georgia Power Co. to BBB from BBB+ and assigned a stable outlook. The agency also lowered the senior unsecured debt ratings to BBB+ from A-.

“The downgrade is driven by the continued uncertainty regarding the schedule and costs to complete the Vogtle 3 and 4 nuclear units following another material revision and disagreement with co-owners on cost sharing. A vote by the co-owners not to proceed with the project and/or a deterioration in the regulatory environment in Georgia can lead to further negative rating actions,” Fitch said in a press release.

Concurrently, Fitch affirmed the BBB+ long-term IDR for the Southern Co. and affirmed the IDRs for Alabama Power Co., Mississippi Power Co., Southern Power Co., Southern Co. Gas, Atlanta Gas Light Co., Nicor Gas Co., and Southern Electric Generating Co. The agency also affirmed the ratings of the senior unsecured notes at Southern Co. Gas Capital.

Fitch revised the outlook for Southern Co. to negative from stable to reflect continued elevated leverage. “Due to parent subsidiary linkages, the outlook for Alabama Power, Southern Power, Nicor Gas and Southern Electric Generating Co. has been revised to negative from stable as well. The outlook on Southern Co.'s other subsidiaries remains stable.”

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