Fitch assigns Progress Energy Florida bonds A

Fitch Ratings said it has assigned an A rating to Progress Energy Florida's new $650 million dual tranche debt offering comprised of $250 million of 0.65% first mortgage bonds due 2015 and $400 million of 3.85% first mortgage bonds due 2042.

The outlook is negative.

Net proceeds will be used to repay at maturity $425 million of 4.8% first mortgage bonds due March 1, 2013, to repay money pool borrowings and for general corporate purposes, the agency said.

The negative outlook reflects ongoing uncertainty related to the operation of the Crystal River 3 nuclear station and a downtrend in credit metrics that is likely to persist through 2012, Fitch stated.

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