Fitch assigns A to Virginia Electric notes

Fitch Ratings said it assigned an A rating to Virginia Electric & Power Co.’s offering of senior notes due 2027.

Proceeds will be used for the repayment of short-term borrowings ($350 million as of Feb. 28) and general corporate purposes.

The notes will rank equally with all other senior unsecured debt and will be senior in right of payment to all subordinated debt.

The outlook on the A- long-term issuer default rating is stable.

Virginia Electric’s current and projected credit metrics are supportive of the ratings. Fitch forecasts said it adjusted debt/EBITDAR to estimate 3.4 times over the next few years, funds flow from operations (FFO) lease-adjusted leverage 3.5 times and FFO fixed-charge coverage to remain above 6 times.

By comparison, these figures were 3.1 times, 3.3 times and 6.4 times, respectively, for the latest 12 months (LTM) ended Dec. 31, 2016.

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