S&P pares Southern Co., units

S&P said it pared its ratings on Southern Co. and its subsidiaries by one notch. This includes trimming the Southern’s issuer rating to BBB+ from A- and its senior unsecured debt to BBB from BBB+.

“The downgrade reflects the continued construction delays and higher costs associated with Vogtle Units 3 and 4 that we believe is indicative of higher construction risks until the nuclear generating facilities are in service. Since the middle of 2018, these units have experienced significant construction delays and more than $4 billion in higher costs,” S&P said in a press release.

Southern’s latest in-service date estimate indicates a 10-month delay for Unit 3 and a seven-month delay for Unit 4, to be in service, compared to the regulatory approved in-service dates of November 2021 for Unit 3 and November 2022 for Unit 4, the agency said.

S&P downgraded the issuer credit and senior unsecured debt issue ratings for Southern Co. Gas Capital Corp., Southern Co. Gas, Mississippi Power Co., Atlanta Gas Light Co., and Georgia Power Co. to BBB+ from A-. The agency also lowered the issuer credit ratings on insulated subsidiaries Alabama Power Co. and Nicor Gas Co. to A- from A. Finally, S&P lowered the issuer credit rating on subsidiary Southern Power Co., which it considers a strategically important subsidiary of Southern Co., to BBB from BBB+.

The outlook is stable.

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