2009 JAN 7 - (VerticalNews.com) -- Fitch Ratings assigns a rating of 'BBB+' to Rochester Gas & Electric Corp.'s (RG&E) issuance of $150 million 8.0% first mortgage bonds (FMBs), due 2033. The new bonds rank equally with other secured debt of RG&E. Proceeds from the sale will be used to repay $50 million of maturing debt and to pay down short-term obligations. The Rating Outlook is Stable.

  RG&E's ratings reflect the relatively low business risk of its regulated transmission and distribution operations, limited commodity price exposure and the availability of credit support from parent, Energy East Corp. (EAS). Near-term liquidity is the primary credit concern. The company's $100 million credit facility is virtually fully drawn and RG&E is dependent on borrowings from EAS for unplanned cash needs. The rise in short-term borrowings is due, in part, to the company's temporary purchase of $39.5 million of its outstanding auction rate tax-exempt securities due to the lack of bids from investors. Credit quality and cash flow have also been adversely affected by a rate freeze that limits the company's ability to recover rising operating costs. In connection with the approval of the merger between EAS and Iberdrola S.A., the New York Public Service Commission (PSC) required RG&E to file a rate case by Oct. 15, 2009. The lack of adequate regulatory relief will place negative pressure on the company's credit ratings ...read more

  2008 NOV 24 - (VerticalNews.com) -- Fitch Ratings has placed the 'BBB+' Insurer Financial Strength (IFS) ratings of LandAmerica Financial Group's (LFG) insurance subsidiaries (see complete list of ratings below) and the 'BBB-' Issuer Default Rating (IDR) of LFG on Rating Watch Positive. Fitch's rating action follows Fidelity National Financial's (FNF) announced plans to acquire LFG in a stock transaction.

  The stock transaction is valued at approximately $128 million as LFG shareholders will receive 0.993 shares of FNF common stock for each LFG share. Financial leverage at FNF is expected to remain near 30% as FNF's operating subsidiaries are expected to provide cash to repay LFG debt prior to the close of the transaction ...read more

  2008 NOV 10 - (VerticalNews.com) -- Fitch Ratings assigns an 'A' rating to $224 million Airport Commission, City and County of San Francisco, CA, San Francisco International Airport (SFO, or the airport), second series revenue notes, series 2008A AMT (subject to alternative minimum tax). Fitch also affirms its 'A' rating on the airport's $3.9 billion in outstanding debt. The Rating Outlook is Positive.

  The series 2008A revenue notes are up to five-year serial notes with near mandatory redemptions (to be adjusted by market demand) for both principal and interest scheduled between 2010 and 2014. The market access risk presented by the revenue notes which assume a remarketing or take-out issue of a portion of the notes' par in each year is partially mitigated by near level annual mandatory redemptions, and the airport's solid liquidity position and high rating category. Nonetheless, a failed remarketing or inability to issue take-out bonds would pressure the airport's financial position ...read more