S&P: ruling supports TECO credit

Standard & Poor's said its ratings on TECO Energy Inc. of BBB-, on negative watch, and its subsidiaries are supported by TECO's announcement that it received a private letter ruling from the Internal Revenue Service.

The ruling allows for TECO Energy to complete the pending sale of interests in its synthetic fuel production facilities, which paves the way for the company to collect about $90 million annually through 2007, the ratings agency said.

S&P said it expects to resolve the CreditWatch listing over the very near term. The agency said the outcome will depend on whether TECO Energy's prospective financial profile provides enough strength relative to the company's business risk.

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