Progress Energy 2007 Annual Report Download - page 47

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Progress Energy Annual Report 2007
45
Progress Energy, as a well-known seasoned issuer, has on
file with the SEC a shelf registration statement under which
Progress Energy may issue an indeterminate number
or amount of various securities, including Senior Debt
Securities, Junior Subordinated Debentures, Common
Stock, Preferred Stock, Stock Purchase Contracts,
Stock Purchase Units, and Trust Preferred Securities
and Guarantees. The board of directors has authorized
the issuance and sale of up to $1.0 billion aggregate
principal amount of various securities off the new shelf
registration statement, in addition to $679 million of
various securities, which were not sold from our prior
shelf registration statement. Accordingly, at December 31,
2007, Progress Energy has the authority to issue and sell
up to $1.679 billion aggregate principal amount of various
securities.
PEC has on file with the SEC a shelf registration statement
under which it can issue up to $1.0 billion of various long-
term debt securities and preferred stock.
PEF has on file with the SEC a shelf registration statement
under which it can issue up to $4.250 billion of various
long-term debt securities and preferred stock.
Both PEC and PEF can issue First Mortgage Bonds
under their respective First Mortgage Bond indentures.
At December 31, 2007, PEC and PEF could issue up to
$3.657 billion and $2.408 billion, respectively, based on
property additions and $1.827 billion and $175 million,
respectively, based upon retirements of previously issued
first mortgage bonds.
CAPITALIZATION RATIOS
The following table shows our total debt to total
capitalization ratios at December 31:
CREDIT RATING MATTERS
The major credit rating agencies have currently rated our
securities as follows:
These ratings reflect the current views of these rating
agencies, and no assurances can be given that these
ratings will continue for any given period of time. However,
we monitor our financial condition as well as market
conditions that could ultimately affect our credit ratings.
On September 6, 2007, S&P upgraded the first mortgage
bonds of both PEC and PEF to A- from BBB+ as a result
of a methodology change for collateral coverage
requirements. Because both PEC and PEF had asset to
potential secured debt ratios of less than 1.5, they were
assigned a recovery rating of 1, which qualified for a one-
notch increase over their corporate credit ratings.
2007 2006
Common stock equity 45.7% 47.2%
Preferred stock and minority interest 1.0% 0.6%
Total debt 53.3% 52.2%
Moody’s
Investors Service
Standard
& Poor’s
Fitch
Ratings
Progress Energy, Inc.
Outlook Stable Stable Stable
Corporate credit rating n/a BBB+ BBB
Senior unsecured debt Baa2 BBB BBB
Commercial paper P-2 A-2 F-2
PEC
Outlook Stable Stable Stable
Corporate credit rating A3 BBB+ A-
Commercial paper P-2 A-2 F-1
Senior secured debt A2 A- A+
Senior unsecured debt A3 BBB A
Subordinate debt Baa1 n/a n/a
Preferred stock Baa2 BBB- A-
PEF
Outlook Stable Stable Stable
Corporate credit rating A3 BBB+ A-
Commercial paper P-2 A-2 F-1
Senior secured debt A2 A- A+
Senior unsecured debt A3 BBB A
Preferred stock Baa2 BBB- A-
FPC Capital I
Quarterly Income Preferred
Securities(a) Baa2 BBB- n/a
Progress Capital Holdings, Inc.
Senior unsecured debt(b) Baa1 BBB- n/a
(a) Guaranteed by Progress Energy, Inc. and Florida Progress.
(b) Guaranteed by Florida Progress.