Fitch rates Tennessee Valley bonds AAA

Fitch Ratings said it assigned an AAA rating Tennessee Valley Authority's roughly $1 billion global power bonds 2013 series A.

Proceeds will be used to refinance outstanding Tennessee Valley debt.

In addition, the agency affirmed the AAA rating on Tennessee Valley's outstanding $22.6 billion global power bonds.

The outlook is negative.

Fitch said the AAA rating assigned to Tennessee Valley's outstanding global power bonds reflects its status as a wholly owned corporation of the United States Government and Fitch's expectation that repayment of the power bonds would ultimately receive the support of the U.S. Government in the event of fiscal distress.

The negative outlook reflects the outlook that Fitch assigned to the U.S. sovereign.

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