TECO Energy outlook remains strong - The Business Journal of the Greater Triad Area:

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billion in debt held by and subsidiariesand Co. The ratingg is supported by the underlying strengthhof TECO’s regulated electric and gas utilityy subsidiary, from which it derives stable cash distributions to meet its fundinvg requirements, Fitch said a Tampa Electric continues to post strong credif metrics, it maintains solid operating performance and it benefitd from Florida’s constructive regulatory environment, Fitch Fitch is concerned, however, abouy slowing customer growth at Tampw Electric. But the company has respondedc to slower growth by postponing projects to increaseelectricv capacity.
Another concern for Fitch is cash flow deterioration atTECO TE) Guatemala because of the adverse rate ordedr in 2008, unplanned outages at the San Jose uncertainty over the extension of a purchasexd power agreement, and the potential for deferred or renegotiatex contracts because of declining markey prices, higher production costs and slumpint demand for coal. TECO Coal and TECO Guatemalwa provide roughly 20 percent of theparent company’s consolidated earning before interest, taxes, depreciation and Fitch said. Credit ratios at Tampw Electric should benefit from higher base ratese in 2009 and 2010 as a result ofa $138 milliom rate order approved in Fitch said.
In addition, an affiliate waterborne transportatio agreement that reducedTampz Electric’s annual net income by $10 milliohn in prior years is expiring. Fitcb expects coverage ratios to remain relativelgy strong with funds from operations coveragd at nearly five timesin 2009. TECO Coal is expectefd to benefit from higher priced contracts signedin 2008. However, soft coal demand and higher miningt production costs at TECO Coal raise the risks ofcontractuakl non-performance by counter-parties and pressure d margins. Diverse regulatory orders and operating issues at the Guatemalahn operations will result in dividend distributionds that are lower thanhistoric levels.
TECO'w liquidity position is considered Fitch said. Cash and cash equivalentw were $34.9 million and available credi t facilitieswere $530 million as of March 31. Liquidity was enhancer by a netoperating loss-tax carry forward of $547.5 milliom as of Dec. 31, which is expectedr to result in minimal cash tax paymentsthrough 2012. In TECO's $100 million note maturing in 2010 is expected to be retiredf withinternal cash. Positive ratinbg action could result in the future from consolidatex leverage ratio reduction in 2010 and higher cash flowsx from a full year of higher base ratesx in 2010 and effectivecost control.