Fitch Rates Florida Power & Light's Secured Bonds Issue 'AA-'; Outlook Stable

NEW YORK--(Business Wire)--Fitch Ratings has assigned an 'AA-' rating to Florida Power &
Light Company's (FP&L) $600 million new issue of secured first
mortgage bonds, 5.95% series due Feb. 1, 2038. FP&L's Issuer Default
Rating (IDR) is 'A'. Proceeds from the new issue will be added to
general corporate funds and may be used to repay short-term borrowings
and for other corporate purposes. As of Jan. 7, 2008, FP&L had $765
million of commercial paper outstanding. The Rating Outlook is Stable.

Fitch reviewed and affirmed FP&L's ratings at the current level on
Dec. 14, 2007. The ratings reflect the integrated utility's strong
financial profile, large and growing customer base, and historically
constructive regulatory environment. The Florida Public Service
Commission (FPSC) has consistently authorized recovery of fuel and
purchased power costs as well as storm recovery costs for electric
utilities in the state. Fitch believes this is an important support
for the utility's credit-worthiness, since FP&L will be increasingly
exposed to natural gas commodity costs, and its service territory is a
storm-prone coastal area. FP&L's base tariffs were set in 2005 under a
rate settlement that is in effect through December 2009. The retail
tariff adjusts annually to reflect projected fuel and purchased power
costs and under- or over-collections from one year are trued up in the
following year, while other riders adjust for new assets placed in
service and costs of environmental compliance, certain taxes and
franchise fees. Credit concerns include uncertainty as to the future
Florida regulatory environment, as a result of recent turnover in
commissioners and gubernatorial administration and increasing utility
costs to consumers.

FP&L is an integrated electric utility serving approximately 4.5
million predominantly residential and commercial customers along the
eastern and lower western coasts of Florida. FPL's service territory
includes Florida's top three counties by population: Miami Dade,
Broward, and Palm Beach County.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Ellen Lapson, +1-212-908-0504
Sharon Bonelli, +1-212-908-0581
Brian Bertsch, +1-212-908-0549 (Media Relations)

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