Moody's rates FirstEnergy notes Baa2

Moody's Investors Service said it has assigned a Baa2 senior unsecured rating to FirstEnergy Solutions Corp.'s (Baa2 issuer rating) proposed up to $1.5 billion senior unsecured debt issuance.

These bonds will be guaranteed by the company's two wholly owned operating subsidiaries, FirstEnergy Generation Corp. and FirstEnergy Nuclear Generation Corp.

The outlook is stable.

The agency added that FirstEnergy will use proceeds from the proposed offering to repay $1 billion currently borrowed under a $2.75 billion credit facility expiring in August 2012 and for working capital purposes.

Moody's added that the Baa2 rating reflects the diversity and scale of FirstEnergy's generating capacity, the generating fleet's strong operating performance, sound financial metrics and near-term hedge profile that provides for relatively predictable and stable cash flows.

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