Fitch Ratings has assigned an ‘A+' rating to Georgia Power Company's (Georgia Power) issuances of $325 million series 2016A 3.250% senior notes due April 1, 2026 and $325 million series 2016B 2.400% senior notes due April 1, 2021. These notes are senior unsecured obligations of Georgia Power. The Rating Outlook is Stable.
The net proceeds from the 2016A offering will be allocated to Eligible Green Projects or Eligible Green Payments. The company defines Eligible Green Projects to include solar generation facilities or electric vehicle charging infrastructure. Eligible Green Payments include payments under Power Purchase Agreements served by solar power or wind power generation facilities.
The net proceeds from the 2016B offering will be used to redeem all or a portion of the $250 million series 2013B floating rate senior notes due March 15, 2016, repay all or a portion of the outstanding short-term indebtedness, and for general corporate purposes.
Georgia Power's ratings are supported by the solid financial profile of the integrated utility which benefits from constructive regulation in Georgia that limits regulatory lag.
Currently, the utility is in the midst of a significant capital program that includes the construction of two new nuclear units at the Vogtle site. The execution risk associated with this significant project and the attendant external financing needs are also considered in the ratings. The Stable Outlook reflects the expectation that the company will continue to receive constructive regulatory treatment including recovery of the construction work in progress (CWIP) financing costs on the new Vogtle units.
