Fitch gives A to Virginia Electric notes

Fitch Ratings said it assigned an A rating to Virginia Electric and Power Co.’s offering of senior notes due 2047.

The agency also rates the notes issued under a reopening of the 2013 series C 2.75% senior notes due 2023 at A.

Proceeds will be used for general corporate purposes and to repay short-term debt (which included $175 million in outstanding commercial paper as of Aug. 31).

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.

Fitch said Virginia Electric’s current and projected credit metrics are supportive of the 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 3.1 times, 3.3 times and 6.7 times, respectively, for the LTM ended June 30.

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