Fitch rates Pepco notes BBB

Fitch Ratings said it assigned a rating of BBB to the $250 million 2.7% senior unsecured notes due Oct. 1, 2015 issued by Pepco Holdings, Inc.

The proceeds will be used to repay existing debt, which could include a combination of $200 million 5.9% senior notes due Dec. 12, 2016, $200 million 6% senior notes due April 26, 2019 and $121 million 6.125% senior notes due June 1, 2017.

The ratings are supported by stable cash flows generated by its transmission and distribution utility subsidiaries, namely Potomac Electric Power Co. (Pepco), Delmarva Power & Light and Atlantic City Electric Co.

Post the divestiture of Conectiv Energy power generation business, the three utility subsidiaries contribute the lion share of the company's total consolidated income, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.