Fitch rates West Penn bonds BBB+

Fitch Ratings said it assigned a BBB+ rating to West Penn Power Co.'s new $275 million issue of 5.95% first mortgage bonds due Dec. 15, 2017. The bonds are secured by a first mortgage lien on the company's property, plant and equipment and rank equally with existing and future secured debt of West Penn.

The outlook is stable.

The proceeds of the bonds are expected to be used to repay intercompany debt and for other general corporate purposes.

The agency said the rating and stable outlook reflect the stability of the transmission and distribution business and Fitch's assumption that West Penn will receive approval from the Pennsylvania Public Utility Commission to begin procuring power at market prices for 2011 provider-of-last-resort load requirement and fully recover purchased power costs through customer tariffs.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.