Moody's: Progress Energy unchanged

Moody's Investors Service said that the recently announced multi-year setback in Progress Energy Florida Inc.'s (Baa1 senior unsecured, stable outlook) plans to bring its Crystal River Nuclear Plant back on line after a nearly two year unplanned outage is detrimental to the utility's credit quality and business risk profile but will not result in a change in the company's credit ratings.

The company has indicated that additional repairs on the plant will cost between $900 million and $1.3 billion and will cause the plant to remain off line until 2014, the agency added. While the repair costs are substantial, the impact on the company will be mitigated to some degree by insurance coverage of up to $2.25 billion for property damage and $490 million for replacement power.

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