Fitch assigns Virginia Electric and Power notes A

Fitch Ratings said it assigned an A rating to Virginia Electric and Power Co.'s new issue of 2016 series A senior notes due Jan. 15, 2026.

The outlook is stable.

Proceeds will be used for the repayment of short-term borrowings ($1.656 billion as of Dec. 31) and for 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.

Current and projected credit metrics are strong and supportive of the current rating. Fitch forecasts debt/EBITDAR to estimate 3.1 times over the next few years, funds from operations (FFO) lease-adjusted leverage 3.4 times and FFO fixed-charge coverage to remain above 6 times.

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