Fitch rates Southwestern Electric notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Southwestern Electric Power Co.'s $350 million issuance of 6.2% senior notes, series H, due March 15, 2040. The issuer default rating remains BBB.

The outlook is negative.

Proceeds from the issuance will be used for general corporate purposes, including funding construction costs, repaying short-term debt and replenishing working capital.

The agency said the ratings for Southwestern Electric take into consideration the company's regulated electric utility operations, affiliation with parent American Electric Power Co. and relatively balanced regulatory environments in Arkansas and Louisiana.

The negative outlook reflects a protracted period of lower cash flows because of higher interest and operating expenses and elevated levels of debt to fund new generation projects, Fitch said.

The debt-to-EBITDA ratio was 4.81 times for 2009.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.