Fitch gives OG&E notes A+

Fitch Ratings said it assigned an A+ rating to Oklahoma Gas & Electric Co.'s (OG&E) proposed $250 million issue of senior notes due March 15, 2044.

The outlook is stable.

Fitch said the ratings and outlook benefit from the supportive regulations by the Oklahoma Corp. Commission, the Arkansas Public Service Commission and the Federal Energy Regulatory Commission. In its primary service territory Oklahoma, OG&E is able to receive pre-approval of construction projects and has fuel adjustment clause and various riders and trackers that support storm cost recovery, pension expenses and smart grid investments. These mechanisms provide greater visibility of earnings and offset the lowered allowed return on equity of 10.2% in the rate case settlement in 2012.

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