- Associated Press - Thursday, May 12, 2016

ATLANTA (AP) - A bond rating agency is downgrading Southern Co.’s debt, citing money the electrical utility will borrow to finance its purchase of natural gas utility AGL Resources.

Fitch Ratings cut the debt rating Thursday to A- from A, after putting the utility on watch when it announced the $8 billion purchase last year.

Southern Co. owns Georgia Power Co., Alabama Power Co., Gulf Power Co. and Mississippi Power Co.

Fitch is also cutting the rating of Mississippi Power to BBB from BBB+, saying Southern Co.’s smallest subsidiary still faces “significant stress” because of the $6.7 billion power plant it’s building in Kemper County. Fitch says those risks are offset by strong financial support Southern Co. has given to Mississippi Power.

Fitch says AGL Resources will make Southern Co. less risky overall.

Copyright © 2018 The Washington Times, LLC.

The Washington Times Comment Policy

The Washington Times is switching its third-party commenting system from Disqus to Spot.IM. You will need to either create an account with Spot.im or if you wish to use your Disqus account look under the Conversation for the link "Have a Disqus Account?". Please read our Comment Policy before commenting.

 

Click to Read More and View Comments

Click to Hide