Fitch rates Southern Electric Generating notes A+

Fitch Ratings said it assigned an issuer default rating of A to Southern Electric Generating Co. (Segco).

The outlook is stable.

The agency also said it expects to assign an A+ rating to Segco's proposed offering of $100 million series 2013A 2.2% senior notes due Dec. 1, 2018.

The notes are fully and unconditionally guaranteed by Alabama Power Co., the agency said.

The proceeds will be used for general corporate purposes, including the pay down of a portion of short-term debt that stood at about $90.8 million as of Nov. 15, 2013, Fitch said, and for the company's continuous construction program.

The ratings are supported by a joint ownership by Georgia Power Co. and Alabama Power, both of which carry an A issuer default rating, and are wholly owned subsidiaries of Southern Co.

The ratings reflect a view that the utility will continue to generate strong credit metrics over the next three years driven by a gradual improvement in industrial sales and rate increases, Fitch said.

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