Moody's: TECO, units up to stable

Moody's Investors Service said it affirmed the ratings of TECO Energy, Inc. (Ba2 senior unsecured) and assigned a Ba1 senior implied rating.

The outlook was revised to stable from negative for TECO, Tampa Electric, TECO Capital Trust I and TECO Capital Trust II.

Moody's also affirmed the ratings of TECO's subsidiary Tampa Electric Co. (Baa2 senior unsecured) and affirmed the Ba3 rating on the trust preferred securities of TECO Capital Trust I.

Moody's said the revision of the outlook reflects reduced business risk resulting from the company's progress in exiting the merchant generation business, including the nearly completed transfer of the Union and Gila River power stations to the project lenders.

The outlook revision also considers the commitment to a back-to-basics strategy focusing on its core Florida utility operations, improved liquidity resulting from non-core asset sales and modifications of bank facilities and Moody's expectation that the company's cash flow will be more predictable going forward and allow it to reduce or refinance the significant debt maturities that occur in 2007.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.