TECO Energy outlook remains strong - Memphis Business Journal:

http://www.americansolutions.com/cgi-bin/mt/mt-cp.cgi?__mode=view&id=208565
billion in debt held by and subsidiariesand Co. The rating is supportec by the underlying strengthof TECO’s regulated electric and gas utility subsidiary, from whicy it derives stable cash distributionsz to meet its funding requirements, Fitch said a Tampa Electric continues to post strong credigt metrics, it maintains solid operating performance and it benefitz from Florida’s constructive regulatory Fitch said. Fitch is however, about slowing customert growth at Tampa But the company has responded to slower growth by postponintg projects to increaseelectric capacity.
Another concerh for Fitch is cash flow deterioratiohn atTECO (NYSE: TE) Guatemala because of the adversed rate order in 2008, unplanned outages at the San Jose uncertainty over the extension of a purchasesd power agreement, and the potential for deferredf or renegotiated contracts because of declining market higher production costs and slumping demand for coal. TECO Coal and TECO Guatemala provide roughly 20 percent of thepareng company’s consolidated earnings before interest, depreciation and amortization, Fitch said.
Credit ratioas at Tampa Electric should benefit from higherf base rates in 2009 and 2010 as a result ofa $138 million rate order approveed in March, Fitch In addition, an affiliate waterborne transportationb agreement that reduced Tampa Electric’ws annual net income by $10 million in prior years is expiring. Fitch expects coverage ratios to remai n relatively strong with funds from operations coveragw at nearly five timesin 2009. TECO Coal is expected to benefiyt from higher priced contracts signedin 2008. soft coal demand and highefr mining production costs at TECO Coal raise the risks ofcontractual non-performancr by counter-parties and pressured margins.
Diverse regulatory orderw and operating issues at the Guatemalan operations will result in dividend distributionds that are lower thanhistoric levels. TECO's liquidity position is consideres strong, Fitch said. Cash and cash equivalents were $34.9 millionb and available credit facilitieswere $530 million as of Marchu 31. Liquidity was enhanced by a netoperating loss-tax carrt forward of $547.5 million as of Dec. 31, whichh is expected to result in minimal cash tax paymentesthrough 2012. In addition, TECO'se $100 million note maturing in 2010 is expectecd to be retired withinternal cash.
Positivew rating action could result in the futurse from consolidated leverage ratio reduction in 2010 and higherd cash flows from a full year of higherf base rates in 2010 and effectivecost