Fitch: TECO on positive watch

Fitch Ratings said it placed the following ratings of TECO Energy, Inc. and its primary operating subsidiary, Tampa Electric Co. on rating watch positive: TECO's issuer default rating at BB+, senior unsecured debt BB+ and Tampa Electric's issuer default rating at BBB and senior unsecured debt BBB+.

The agency said that the rating watch positive of TECO reflects its expectation that the approximate $370 million to $380 million of net proceeds from the sale of TECO Transport Corp. will be used to repay parent debt and reduce leverage.

According to Fitch, TECO announced an agreement to sell the Transport barge operations on Oct. 29 and Fitch expects to resolve the rating watch positive status after the $500 million parent company debt reduction plan is substantially completed.

At this time, Fitch said it considers likely a one-notch upgrade of TECO to BBB-.

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