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