Fitch rates PPL Energy Supply notes BBB+

Fitch Ratings said it has assigned a BBB+ rating to PPL Energy Supply, LLC's new $300 million issue of 6.2% senior notes due May 15, 2016.

The proceeds will be used to fund capital expenditures, including those relating the installation of pollution-control equipment at two coal-fired generating stations in Pennsylvania, and for general corporate purposes. The notes will rank equally with all of the company's other unsecured and unsubordinated debt outstanding.

Fitch said the ratings reflect the significant and predictable revenue derived from intermediate-term power supply contacts, primarily with affiliate PPL Electric Utilities, the favorable competitive position of the company's largely coal- and nuclear-based generation fleet and a moderate level of recourse debt.

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