Fitch rates Virginia Electric notes A

Fitch Ratings said it assigned an A rating to Virginia Electric & Power Co.’s offering of senior notes due 2028.

Proceeds will be used for general corporate purposes and to repay short-term debt (which included $1 billion in outstanding commercial paper as of Feb. 18).

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 is stable.

Fitch said Virginia Electric’s current and projected credit metrics are supportive of the company's current ratings.

The agency forecasts adjusted debt/EBITDAR to estimate 3.4 times over the next few years, FFO lease-adjusted leverage to be about 3.5 times and FFO fixed-charge coverage to remain above 6 times.

By comparison, these figures were 3 times, 3.6 times and 6.4 times, respectively, for the LTM ended Dec. 31, 2017.

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