Fitch lowers Appalachian Power

Fitch Ratings said it downgraded the ratings for Appalachian Power Co.

Ratings downgraded include the issuer default rating to BBB- from BBB; the senior unsecured debt to BBB from BBB+; the preferred stock to BBB- from BBB; and the pollution control revenue bonds to BBB from BBB+.

The outlook has been revised to stable from negative.

Fitch said the ratings downgrade reflects the company's projected credit metrics that are more consistent with the BBB- rating category following a trend of weakening coverage measures and high debt leverage, due to higher operating and maintenance expenses, under-recovery of fuel costs and elevated levels of capital expenditures.

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