Fitch rates Avista bonds BBB+

Fitch Ratings said it assigned a BBB+ rating to Avista Corp.'s planned $250 million secured issuance of 5.125% first mortgage bonds due April 1, 2022.

The issuer default rating is BBB-.

The outlook is stable.

The issuance is expected to close on Sept. 22. Proceeds will be used to repay variable-rate short-term borrowing under the issuer's $320 million credit facility, which matures in April 2011, and for general corporate purposes.

Ratings reflect the balanced regulatory environment in the utility's service territory and effective energy and gas cost recovery mechanisms, the agency said.

The benefit provided by the utility's low-cost fleet of hydroelectric generation facilities is somewhat mitigated by the effects of streamflow variability on hydroelectric generation, the agency noted.

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