Fitch rates Southern Power notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Southern Power Co.'s €600 million series 2016A 1% senior notes due June 20, 2022 and €500 million series 2016B 1.85% senior notes due June 20, 2026.

The notes are unsecured and unsubordinated obligations of Southern Power, Fitch said.

The proceeds will be used to fund Southern Power's investments in renewable energy generation, specifically solar and wind power generation projects in the United States, the agency said.

The company is expected to use a portion of the proceeds to repay a portion of outstanding indebtedness, Fitch said.

The company has a BBB+ issuer default rating and security ratings with stable outlook.

The ratings reflect its conservative business strategy, which minimizes commodity risk and maintains a balanced capital structure to generate strong credit metrics, the agency said.

The ratings also consider its conservative contracting strategy, Fitch said.

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