Fitch Ratings has assigned 'AA-' ratings to the following JEA fixed-rate Electric System revenue bonds:
--$124.22 million, 20-year revenue bonds series three 2009A;
--$198.505 million, 10-year subordinated revenue bonds 2009B.
The bonds are expected to price the week of Feb. 16, 2009. Proceeds from the fixed-rate bonds will be used to: refund outstanding bonds to achieve savings; refund variable rate debt; and deposit funds to the debt service reserve and/or construction fund account.
In addition, Fitch has affirmed the following outstanding JEA ratings:
--Senior electric system revenue bonds at 'AA-';
--Subordinated electric system revenue bonds at 'AA-';
--St. John's River Power Park bonds at 'AA-';
--Bulk Power Supply System Scherer 4 Project revenue bonds at 'AA-';
--Series B taxable commercial paper notes at 'F1+';
--Series C tax-exempt commercial paper notes at 'F1+'.
The Rating Outlook is Stable.
Support for the 'AA-' rating and Stable Outlook reflects JEA's above average credit characteristics, including:
--Strong management practices;
--Efficient generating portfolio;
--Competitive retail electric rates;
--Diverse customer base;
--Solid financial performance and liquidity.
The following credit drivers could affect JEA's rating:
--As a number of standby bond purchase agreements expire over the next six months, JEA's challenge is to manage risks associated with extending or replacing existing liquidity facilities;
--Maintenance of financial metrics consistent with the 'AA-' rating;
--Ability to recover fuel costs in a timely manner and replenish the rate stabilization fund;
--Implementation of a large capital plan funded from a balance of debt and cash.
JEA is an integrated utility providing electric and water service within the city of Jacksonville, FL, and surrounding portions of three neighboring counties. JEA serves over 414,000 electric customers and is one of the largest public power systems in the United States, with 3,300 megawatt (MW) of net generating capacity.
For a full review of the credit profile of JEA's electric system, please see Fitch's Jan. 16, 2009 report titled 'JEA (FL) Electric Utility System' available on the Fitch web site at www.fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contacts:
Fitch Ratings, New York
Yvette M. Dennis, 212-908-0668
Karl
Pfeil, III, 212-908-0516
or
Media Relations:
Cindy
Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com