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
Contact person:Glen Grabelsky, Managing Director
Fitch Ratings, Secondary Analyst
Contact person:Shalini Mahajan, Senior Director
Contact person:Daniel Neama, Associate Director
Fitch Ratings, Primary Analyst