Fitch rates Appalachian Power’s $275 million floating rate notes

Fitch Ratings on Aug. 15 said it has assigned a BBB rating to Appalachian Power Co.‘s (APCo) $275 million issuance of unsecured floating rate notes.

The notes rank pari passu with the company’s other unsecured debt and will mature on Aug. 16, 2013. The interest rate will be reset quarterly based on the three-month LIBOR rate plus 0.375%.

The rating outlook is stable.

Net proceeds from the issuance will be used for general corporate purposes. Such purposes include funding the payment of APCo’s outstanding $250 million, 5.65% senior notes series O that mature on Aug. 15; funding the company’s construction program; repaying advances from affiliates; and replenishing working capital.

The issuance is expected to close on Aug. 15.