Moody’s rates Mid-Atlantic debt Baa1

Moody's Investors Service said it assigned a Baa1 senior unsecured rating to Mid-Atlantic Interstate Transmission LLC (MAIT) and affirmed its Baa1 long-term issuer rating.

The outlook is stable.

Mid-Atlantic is regulated by the Federal Energy Regulatory Commission (FERC). Its assets were transferred from utility affiliates Metropolitan Edison Co. (Met-Ed, A3 stable) and Pennsylvania Electric Co. (Baa1 stable) in 2017.

On May 10, Mid-Atlantic will issue $450 million of senior unsecured debt.

Proceeds will be used to refinance short-term borrowing under the FirstEnergy regulated money pool and fund its capital expenditures.

"MAIT's credit profile reflects its low business risk as a FERC regulated transmission company with transparent revenues and cash flows," Moody's analyst Jairo Chung said in a news release.

"We expect MAIT to maintain an adequate and stable financial profile with its FFO to net debt ranging around 18% over the next 2-3 years."

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