TEXT-S&P rates American Electric Power Co debt 'BBB-'

Wed Nov 28, 2012 12:22pm EST

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Nov 28 - Standard & Poor's Ratings Services said today it assigned an
issue-level rating of 'BBB-' to American Electric Power Co. Inc.'s (AEP;
BBB/Stable/A-2) announced senior unsecured notes, series E and F. AEP intends to
use the proceeds to retire its existing $245 million of senior unsecured notes
and $315 million of junior subordinated notes. AEP's existing senior unsecured
debt, which will be redeemed, is rated the same as the 'BBB' corporate credit
rating (CCR) because AEP took legal measures to make holding company debt pari
passu with the senior unsecured debt at some of its utility subsidiaries. The
new senior unsecured debt is rated one notch lower than the CCR because of
structural subordination where priority obligations exceed 20% of total assets
absent goodwill.

RELATED CRITERIA AND RESEARCH
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008 
     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

RATINGS LIST

New Rating

American Electric Power Co. Inc.
 Sr. nts., ser. E due 2017                BBB-
 Sr. nts., ser. F due 2022                BBB-

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
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