Fitch rates $1.3 billion Duke Energy Florida Project Finance LLC notes

Written By: Stratton Report
June 8, 2016

Fitch Ratings

On June 8, Fitch Ratings announced expected ratings on the Duke Energy Florida Project Finance, LLC. The Series A notes due in 2018, 2021, 2026, and 2033, totaling $1.294 billion, all will receive a ‘AAAsf’ rating.

Security for the bonds will be the nuclear asset-recovery property, which includes the irrevocable right to impose, bill and collect the nuclear asset-recovery charges from all customers of DEF’s service territory in Florida.

The strength and stability of the underlying NARCs are established by the financing order issued by the Florida Public Service Commission. The financing order establishes the irrevocable, binding, and nonbypassable NARCs and defines bondholders’ property rights in the nuclear asset-recovery property. The financing order contains the key elements important in a utility tariff securitization.