Fitch Ratings has assigned an ‘A’ rating to Delmarva Power & Light Co.’s (DPL) $300 million, 3.50% first mortgage bonds due Nov. 15, 2023. The rating outlook is stable. Proceeds of the offering will be used to repay at maturity $250 million first mortgage bonds due Dec. 1, 2013 and for general corporate purposes. The rating agency sees improving credit prospects, due to the utility’s efforts to seek rate increases and less capital spending, due to the completion of smart meter installations and lower distribution and transmission system spending.
Delmarva is also seeking alternative rate cases with regulators in an effort to avoid yearly rate hike requests. Delmarva is seeking a multi-year rate plan in Delaware. Credit quality could be affected by the outcome of a pending $42 million rate case in Delaware, a regulatory challenge to transmission rates and proceeds from a lease liquidation.
