Moody's rates Progress Energy loan A3

Moody's Investors Service said it assigned an A3 senior unsecured bank facility rating to a new $750 million credit agreement dated Oct. 15 between Carolina Power & Light Co., doing business as Progress Energy Carolinas, Inc., and a bank group led by Wells Fargo Bank, NA as administrative agent.

The agency also said it affirmed all ratings of Progress Energy, Inc., Progress Energy Carolinas, Inc., and Progress Energy Florida, Inc., including their prime-2 short-term ratings for commercial paper.

The outlook is stable.

The A3 senior unsecured rating of Progress Energy Carolinas reflects above average regulatory environments in both North and South Carolina with credit supportive cost recovery mechanisms, strong financial metrics and a service territory that is expected to experience limited growth over the near term, Moody's said.

The Baa1 senior unsecured rating of Progress Energy Florida reflects a decline in the credit supportiveness of the political and regulatory environment in Florida over the last year, strong legacy cost recovery provisions in place and financial metrics that have been variable, the agency said.

The group's ratings are constrained to some extent by the high leverage of the parent company, Progress Energy, Inc., which has a Baa2 senior debt rating and stable outlook.

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