Fitch rates Public Service of Colorado bonds A

Fitch Ratings said it assigned an A rating to Public Service Co. of Colorado's $800 million issuance of first mortgage bonds consisting of $300 million 2.25% series No. 23 due Sept. 15, 2022 and $500 million 3.60% series No.24 due Sept. 15, 2042.

The proceeds will be used to repay short-term borrowings, to fund the repayment or redemption of outstanding long-term debt, including the maturity of $600 million of 7.875% first mortgage bonds due Oct. 1, 2012 and for general corporate purposes, including the funding of utility capital expenditures and the repayment of commercial paper.

The notes will rank on parity in right of payment with all existing and future secured debt.

The outlook is stable.

The ratings are supported by the low-risk nature of its regulated utility operations, which deliver consistent cash flow metrics due in large part to balanced regulatory treatment, Fitch said.

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