Fitch Rates Tampa Electric's $150MM 6.10% Sr Unsec Notes 'BBB+'; Outlook Stable

Business Wire, May 14, 2008

NEW YORK -- Fitch assigns a 'BBB ' rating to the $150 million of 6.10% senior unsecured notes, due May 15, 2018, issued by Tampa Electric Company (Tampa Electric). The new notes rank equally with other unsecured debt of Tampa Electric. The proceeds will be used to repay short-term debt and general corporate purposes. The Rating Outlook is Stable.

Tampa Electric's ratings reflect strong credit ratios, with EBITDA to interest of 4.6 times (x) for the twelve months ending March 31, 2008, a constructive tariff regime, and relatively low industrial concentration. Credit concerns include slower kilowatt hour sales growth due to the weakening Florida housing market, an increasing reliance on gas-fired generating capacity over the next five years, more stringent environmental regulations, and the need for base rate relief in 2009 to earn allowed rates of return. Tampa Electric's forecast for growth in the number of customers has slowed to slightly more than 0.6% for 2008, compared with 2% in prior years.

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