Fitch Rates DTE Electric Co.'s $700MM General & Refunding Mtge Bonds 'A'; Outlook Stable Ratings Endorsement Policy
Fitch Ratings has assigned a rating of 'A' to DTE Electric Company's (DECo) $700 million issuance of general and refunding mortgage bonds comprising $350 million 10-year, 2014 series D mortgage bonds due March 1, 2025 and $350 million 30-year, 2014 series E mortgage bonds due July 1, 2044. The mortgage bonds will rank pari passu with DECo's existing secured mortgage debt.
Proceeds from the issuance will be used to repay $460 million of DECO's existing secured debt including $200 million 5.4% first mortgage bonds (FMB) due Aug 1, 2014, $200 million of 4.8% FMBs due Feb 15, 2015, $60 million of 5.25% of tax-exempt revenue refunding bonds due Aug. 1, 2029, and the remainder for general corporate purposes. The Rating Outlook for DECo is Stable.
Stable Outlook: DECo's Outlook reflects Fitch's expectations of stable earnings and cash flows throughout the forecast period due to DECo's regulated utility operations and a constructive regulatory environment in Michigan.
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For more information:
One State Street Plaza
New York, New York
United States, 10004
Glen Grabelsky, Managing Director
Fitch Ratings, Secondary Analyst
Shalini Mahajan, Senior Director
Daniel Neama, Associate Director
Fitch Ratings, Primary Analyst