FPL Energy Virginia Funding Corp.'s (Doswell) $435 million, 7.52% senior secured bonds are rated 'BBB-'. The outlook is stable. The rating reflects the following risks: Relatively low debt coverage ratios that are expected to be between 1.35x and 1.40x. Contractual provisions that allow Virginia Electric & Power Co. (Virginia Power) to reduce capacity payments if the Virginia State Corporation Commission disallows cost recovery after 2010. Slightly lower cash flow after 2005 if the Doswell combustion turbine unit (Doswell CT) does not replace its expiring power-purchased agreement (PPA) with Virginia Power with new contracts with other counterparties. Cash flow from the Doswell combined-cycle unit (Doswell CC) is exposed to merchant risk in the last one and one-half years of the bond...
Companies mentioned in this report are: FPL Energy Virginia Funding Corp.,Virginia Electric & Power Co.,NextEra Energy Capital Holdings, Inc.
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