Fitch rates NextEra units A-

Fitch Ratings said it assigned A- ratings to NextEra Energy Inc.'s $350 million (and potentially up to $402.5 million) of equity units and FPL Group Capital Inc.'s $350 million 7% series D senior unsecured debentures due 2015.

The issuer default rating is A- for both companies, and the outlook for both is negative.

Each equity unit consists of a forward equity purchase contract and series D debentures. The purchase contracts will obligate the investors to buy common shares on Sept. 1, 2013.

The agency said NextEra's ratings are supported by sound liquidity and satisfactory cash flow from two businesses: its utility subsidiary, Florida Power & Light, and FPL Group Capital's non-regulated energy subsidiary, NextEra Energy Resources.

Credit concerns reflected in the negative outlook include projected weak forward wholesale power and capacity prices, increased competition in the renewable energy field and the effects on Florida Power & Light of an unfavorable January 2010 base rate decision and the still adverse economic conditions in Florida, Fitch said.

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