Global Credit Research - 14 Aug 2015
Approximately $2.2 billion of debt securities downgraded
New York, August 14, 2015 --
Moody's Investors Service, ("Moody's") downgraded Mississippi Power Company's senior unsecured rating to Baa2 from Baa1 and its preferred stock rating to Ba1 from Baa3. The rating outlook is negative. This rating action concludes the review of Mississippi Power's rating initiated on 27 May 2015. Moody's affirmed the ratings of The Southern Company (Southern, Baa1 senior unsecured) with a stable outlook.
"The downgrade of Mississippi Power's ratings reflects the lack of permanent cost recovery provisions in place for the Kemper IGCC plant since the Mississippi Supreme Court invalidated the utility's 2013 rate plan earlier this year," said Michael G. Haggarty, Associate Managing Director. "The downgrade also considers the increased concentration risk, financial exposure and liquidity pressure on the utility following the exit of its electric cooperative utility partner from a planned 15% ownership in the Kemper plant," added Haggarty.