Fitch Rates PowerSouth Energy Cooperative (Alabama) Series 2010A Bonds 'A ... Benzinga

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has assigned an 'A-' rating to the following PowerSouth Energy Cooperative (PowerSouth) financing bonds:

--$75 million IDB of the Town of Chatom (Gulf Opportunity Zone Refunding Bonds), series 2010A.

The 2010A bonds are expected to sell via negotiation on or about Sept. 29, 2010. Proceeds will be used to refund PowerSouth's IDB of the Town of Chatom Gulf Opportunity Zone Bonds, series 2007B.

In addition, Fitch affirms the rating on the following outstanding bonds:

--$1.132 billion PowerSouth senior secured obligations at 'A-'.

The Rating Outlook is Stable.

RATING RATIONALE:

--The rating reflects PowerSouth's stable and experienced management team, as well as the continued progress with its financial plan to increase cash flow, liquidity, and equity targets.

--The underpinnings of the rating include PowerSouth's status as an all-requirements provider of power and energy to its 20 members, through contracts extending through 2050.

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