Fitch rates Progress Carolinas bonds A+

Fitch Ratings said it assigned a rating of A+ to the $500 million of 3% first mortgage bonds due Sept. 15, 2021 issued by Carolina Power & Light Co. doing business as Progress Energy Carolinas, Inc.

The new bonds are secured by a lien of mortgage and rank equally with PEC's other first mortgage bonds.

The outlook is stable.

Proceeds will be used to repay short-term debt, which was about $178 million as of Aug. 31, and for general corporate purposes, including construction expenditures.

Ratings reflect the company's financial position and supportive state regulation, the agency said.

Ratings also consider the upstream dividend payments to parent, Progress Energy, Inc. (BBB/stable), needed to help support the substantial holding company debt, 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.