S&P ups Nashville Electric, Tenn., rates bonds AA+

Standard & Poor's said it assigned an AA+ rating to Nashville Electric System's $215 million series 2008A electric system revenue bonds and series 20008B electric system revenue refunding bonds due 2033.

The agency raised the rating on all parity debt to AA+ from AA. The system is a component unit of the Metropolitan Government of Nashville and Davidson County, Tenn.

The outlook is stable.

Proceeds of the series A bonds will be used to finance most of the capital spending for the issuer over the next three years. Proceeds of the series B bonds will be used to defease and refund outstanding debt.

The higher rating reflects the consistently strong financial metrics, the increasingly diversified and strengthening Nashville economy and the reasonably low-cost power supply from the Tennessee Valley Authority, according to the agency.

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