Fitch affirms Progress Energy

Fitch Ratings said it affirmed the ratings for Progress Energy, Inc. and its subsidiaries following news of an agreement to merge with Duke Energy, Inc. in a stock for stock transaction.

The agency also said it affirmed its issuer default rating at BBB.

The outlook is stable.

Key rating drivers include similarities between the two companies' business risk and credit profiles, Fitch said, as well as standalone credit metrics at Progress that are consistent with the BBB rating.

The merger is expected to produce business advantages, including opportunities for future efficiencies, economies of scale and greater diversity, the agency said, adding that there would be no incremental debt associated with the merger.

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