Fitch rates Virginia Electric notes A-

Fitch Ratings said it assigned an A- rating to the 3.45% senior unsecured notes due Sept. 1, 2022, issued by Virginia Electric and Power Co.

The outlook is stable.

The proceeds will be used for general corporate purposes, including the prefunding of fourth-quarter 2010 capital needs and the repayment of short-term debt, including inter-company debt owed to parent company, Dominion Resources, Inc., which has BBB+ ratings.

The ratings are underpinned by constructive state regulation that facilitates timely recovery of generation and transmission investments and a relatively robust economy in the service territory that has resulted in above-average load growth, Fitch said.

The company is reducing reliance on purchased power by investing in new generation, the agency said.

Its liquidity is considered strong, Fitch added.

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