Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
Global Credit Research - 21 Oct 2010
$1.5 billion of bank credit facilities rated
New York, October 21, 2010 -- Moody's Investors Service assigned an A3 senior unsecured bank facility
rating to a new $750 million credit agreement dated as of October
15, 2010 between Carolina Power & Light Company d/b/a Progress
Energy Carolinas, Inc. and a bank group led by Wells Fargo
Bank, N.A. as Administrative Agent. Moody's
assigned a Baa1 senior unsecured bank credit facility rating to a $750
million credit agreement dated as of October 15, 2010 between Florida
Power Corporation d/b/a Progress Energy Florida, Inc. and
a bank group led by Bank of America, N.A. as Administrative
Agent. Moody's affirmed all ratings of Progress Energy,
Inc., Progress Energy Carolinas, Inc.,
and Progress Energy Florida, Inc., including their
Prime-2 short-term ratings for commercial paper.
The rating outlook of all three entities is stable.
The A3 senior unsecured rating of Progress Energy Carolinas (PEC) reflects
above average regulatory environments in both North and South Carolina
with credit supportive cost recovery mechanisms, strong financial
metrics, and a service territory that is expected to experience
limited growth over the near-term. The utility is in the
midst of a substantial capital expenditure program for new gas-fired
generation, transmission and distribution improvements, as
well as for demand side management, energy-efficiency,
and conservation programs.
The Baa1 senior unsecured rating of Progress Energy Florida (PEF) reflects
a decline in the credit supportiveness of the political and regulatory
environment in Florida over the last year, strong legacy cost recovery
provisions in place, financial metrics that have been variable but
generally adequate for its rating, and difficult economic conditions
in its central Florida service territory. PEF's senior unsecured
rating was downgraded to Baa1 from A3 in April 2010 following highly political
rate case proceedings and a rate case outcome that was unsupportive of
credit quality. The utility has since reached a settlement with
the Florida Public Service Commission that should preclude the need for
additional base rate proceedings through 2012.
PEF's cash flow over the last year has been negatively affected
by the prolonged outage of its Crystal River 3 nuclear unit, which
has been undergoing repairs since damage to the container wall was discovered
during a refueling outage in September 2009. While some repair
and replacement power costs are covered by insurance, the company
expects to recover replacement power costs in excess of insurance coverage
through its fuel cost-recovery clause. As of June 30,
2010, PEF had spent $64 million on repairs and $139
million of replacement power, net of insurance.
Both PEC and PEF's ratings are also constrained to some extent by
the high leverage of the parent company, Progress Energy,
Inc. (Baa2 senior unsecured, stable outlook) which,
at approximately $4.2 billion, represents 33%
of the consolidated organization's total debt.
Both PEC and PEF maintain good liquidity profiles that have been strengthened
by the increase in the size of their bank facilities to $750 million
from $450 million and by the concurrent increase in the size of
their commercial paper programs. The credit facilities do not contain
a material adverse change clause for new borrowings and both contain a
65% debt to capital covenant, which each company is in compliance
with. PEC's capital expenditure program is more substantial
at approximately $1.5 billion annually over the next few
years, while PEF's will be less than it has been historically
at under $1.0 billion in 2010 and declining in both 2011
and 2012. These capital expenditures will be financed with a combination
of internally generated funds and/or debt issuances at the utilities.
The utilities can supplement these liquidity sources with access to Progress
Energy's money pool, which allows the company to more efficiently
allocate cash among the two regulated utility subsidiaries. PEC
has no long-term debt due until 2012 while PEF has $300
million of long-term debt due in 2011, which Moody's
expects will be refinanced.
An upgrade of PEC's ratings could be considered if economic conditions
in PEC's service territory begin to recover, if there is a
significant reduction in parent company debt, or if there is an
improvement in PEC's already strong financial coverage metrics.
A downgrade of PEC could be considered if there are adverse regulatory
developments in either North or South Carolina that would impair the timely
recovery of prudently incurred costs or there is a sustained decline in
financial coverage metrics, including a ratio of CFO before working
capital plus interest to interest below 4.0x or CFO before working
capital to debt below 20%.
An upgrade of PEF's ratings could be considered if there is an improvement
in the political and regulatory environment for investor-owned
utilities in Florida, which may not be evident until the utility
files its next rate case and new commissioners are in place. An
upgrade could also be considered if financial coverage metrics improve,
including a ratio of CFO before working capital plus interest to interest
above 4.5x and CFO before working capital to debt above 22%.
A downgrade of PEF could be considered if the political and regulatory
environment in Florida worsens, if there are significant cost disallowances
or lower earned returns, or if financial metrics weaken from current
levels, including CFO before working capital plus interest to interest
below 3.8x and CFO before working capital to debt remains below
16% for a sustained period.
Carolina Power & Light Company d/b/a Progress Energy Carolinas,
Inc. senior unsecured bank credit facility rating of A3;
Florida Power Corporation d/b/a Progress Energy Florida, Inc.
senior unsecured bank credit facility rating of Baa1.
Progress Energy's Baa2 senior unsecured debt and Issuer Rating and
Prime-2 short-term rating for commercial paper;
Carolina Power & Light Company d/b/a Progress Energy Carolinas'
A1 senior secured debt, A3 senior unsecured debt and Issuer Rating,
Baa2 preferred stock, and Prime-2 short-term rating
for commercial paper;
Florida Power Corporation d/b/a Progress Energy Florida's A2 senior
secured debt, Baa1 senior unsecured debt and Issuer Rating;
Baa3 preferred stock, and Prime-2 short term rating for commercial
Florida Progress Funding Corporation's Baa2 junior subordinated
FPC Capital 1's Baa2 preferred stock.
Progress Energy, Inc. is a holding company for regulated
utilities Carolina Power & Light Company d/b/a Progress Energy Carolinas,
Inc. and Florida Power Corporation d/b/a Progress Energy Florida,
Inc. and is headquartered in Raleigh, North Carolina.
The principal methodology used in rating Progress Energy Carolinas was
the Global Regulated Electric and Gas Utilities rating methodology published
in August 2009. Other methodologies and factors that may have been
considered in the process of rating this issuer can also be found on Moody's
Information sources used to prepare the credit rating are the following:
parties involved in the ratings, parties not involved in the ratings,
public information, confidential and proprietary Moody's Investors
Service's information, confidential and proprietary Moody's
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of assigning
a credit rating.
MOODY'S adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
MOODY'S considers to be reliable including, when appropriate,
independent third-party sources. However, MOODY'S
is not an auditor and cannot in every instance independently verify or
validate information received in the rating process.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com
for further information.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
Michael G. Haggarty
Senior Vice President
Infrastructure Finance Group
Moody's Investors Service
William L. Hess
MD - Utilities
Infrastructure Finance Group
Moody's Investors Service
Moody's Investors Service
Moody's rates new Progress Energy utility bank credit facilities
250 Greenwich Street
New York, NY 10007
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.