S&P lifts Mississippi Power

S&P said it affirmed the A- issuer credit ratings and all issue ratings on Southern Co., Alabama Power Co., Georgia Power Co., Gulf Power Co., Southern Co. Gas, Nicor Gas Co., Pivotal Utility Holdings and unregulated generator Southern Power Co.

The outlook remains negative.

The agency also said it raised the long-term issuer credit rating on Mississippi Power Co. to A- from BBB+, along with all four of its long-term issue ratings.

The outlook on Mississippi Power is negative.

Southern has recently taken steps to address intensifying risks arising from the decision to proceed with the construction of new units at the Vogtle nuclear plant and added pressure on credit metrics due to U.S. corporate tax reform, S&P explained.

Recent company efforts have added a measure of cushion to credit quality against the considerable risks from the challenges of completing Vogtle construction without an eventual regulatory disallowance, the agency said.

While S&P said it anticipates that the company will continue to respond to credit stress from tax reform through regulatory means and a stronger consolidated balance sheet through asset sales and equity issuances, the company continues to operate with minimal cushion at the current rating level.

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