Fitch rates Ohio Valley Electric BBB-, debt BBB-, BBB

Fitch Ratings said it assigned to Ohio Valley Electric Corp. an issuer default rating of BBB-, unsecured debt rating of BBB- and secured debt rating of BBB.

The outlook is stable.

The company is a sponsor-owned electricity generation company that sells electricity to its sponsors under a long-term inter-company power agreement.

The ratings are heavily dependent upon the ratings of its owners, Fitch said, adding that the financial strength of its sponsors and contractual performance is critical to its economic life and for its access to the debt capital market.

Credit concerns include increasing operating and maintenance costs due to the aging of the company's generating plants and cost to comply with likely new stringent environmental regulations controlling power plant emissions, including carbon emissions, Fitch said.

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