The virus crisis is casting shadows even on industry giants like Southern Co., parent to Alabama Power Co.
Fitch Ratings, on April 2, gave a BBB+ rating to a $1 billion batch of senior notes of The Southern Co.
The rating came with a “Negative Rating Outlook,” looking down the road to a two things. First mention was “material execution risks that still lie ahead for Georgia Power Company, Southern Company’s largest subsidiary, regarding the construction of Vogtle 3 and 4 nuclear units.”
But the other “key rating driver” is “impact from coronavirus.”
“Coronavirus concerns are causing unprecedented disruptions to state and local economies, as well as to the financial markets,” Fitch notes of the obvious. Then, particular to Southern, “With a sharp pullback in economic activity, Fitch expects the electric sales to commercial and industrial customers to decline.”