Fitch rates PSEG notes BBB+

Fitch Ratings said it assigned a BBB+ rating to PSEG Power, LLC's two new series of senior unsecured notes consisting of $300 million 2.5% notes maturing April 15, 2013 and $250 million 5.125% notes maturing April 15, 2020.

The outlook is stable.

Proceeds will be used for general corporate purposes, to fund the redemption of $48 million 6% medium-term notes due 2013 and $161 of 6.5% MTNs due 2014 and to partially fund the cash consideration required for the exchange of up to $250 million of its outstanding 7.75% senior notes due 2011.

Ratings reflect Power's cost competitive merchant generation assets operating primarily in the large and liquid PJM market, low leverage, supportive cash flow and fixed charge coverage ratios and a hedging strategy that limits exposure to the volatility of spot electricity commodity prices in the short term, the agency said.

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