Moody's: Latest Kemper plant cost increases are credit negative but will not affect Mississippi Power or Southern Company's rating or stable rating outlook

New York, April 03, 2014 -- Moody's Investors Service said that yesterday's announcement that Kemper County IGCC project costs had again increased by a minimum of $177 million is credit negative for both the utility Mississippi Power Company (Baa1 senior unsecured, stable outlook) and its parent company Southern Company (The) (Baa1 senior unsecured, stable outlook), but will not result in a change in either entity's credit rating or stable rating outlook. "As with the other recent cost increases, Mississippi Power will not seek recovery of these additional costs from ratepayers, and we expect the Southern parent company to finance these additional costs, insulating the utility to a large degree", said Michael G. Haggarty, Senior Vice President. The magnitude of these additional costs are not significant enough to affect the ratings or outlook of the parent company.

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