Fitch: PPL Energy notes BBB

Fitch Ratings said it assigned a BBB rating to PPL Energy Supply LLC's new $500 million issue of 4.6% senior notes due Dec. 15, 2021.

The outlook is stable.

The proceeds will be used to repay a portion of the short-term debt incurred to retire the company's $500 million 6.4% senior notes on Nov. 1, 2011. The remainder will be used for general corporate purposes.

The company is exposed to commodity price risk in the mid-Atlantic and western markets where it primarily operates, Fitch said.

Leverage and interest-coverage measures are supportive of the company's current ratings and risk profile, the agency said, but will be pressured by low power prices over the next several years.

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