S&P revises Southern, subsidiaries to negative

S&P said it affirmed its ratings on Southern Co., including the A- issuer credit rating, and the ratings on its subsidiaries Alabama Power Co., Georgia Power Co., Gulf Power Co., Mississippi Power Co., Southern Power Co. and Southern Co. Gas, and revised the outlooks to stable from negative.

The Georgia Public Service Commission (PSC) recently approved a settlement agreement between its staff and Georgia Power that ensures recovery of a higher level of investment in the construction of two new nuclear plants. The settlement reduces uncertainty on ultimate cost recovery and extends the in-service date for the new units to December 2020.

S&P said the stable outlook reflects the moderation of business risk stemming from the certainty of Georgia Power's ability to recover a higher level of capital investment in its two new nuclear units currently under construction, largely as a result the approved settlement agreement.

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