Fitch rates Virginia Electric notes A

Fitch Ratings said it assigned an A rating to Virginia Electric and Power Co.'s dual tranche offering of senior notes due 2026 and 2046.

The proceeds will be used for the repayment of short-term borrowings and general corporate purposes, Fitch said.

The notes will rank equally with all other senior unsecured debt and will be senior in right of payment to all subordinated debt, the agency said.

The outlook is stable.

The company’s current and projected credit metrics are supportive of the ratings, Fitch said.

The agency said it considers the regulatory environment in Virginia and North Carolina to be constructive due largely to rider mechanisms that provide timely cost recovery of invested capital.

But the company’s capital expenditure is expected to remain elevated over the next five years, Fitch said.

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