We have lowered the long-term rating to 'BBB-' from 'AA+' and assigned a recovery rating of '2' to Tucson Electric Power Co.'s $130 million series 2008B tax-exempt senior unsecured revenue bonds. At the same time, we removed the 'A-1+' short-term issue rating on the bonds. The 'BB+' corporate credit rating and all other ratings remain unchanged. The rating action reflects the remarketing of the bonds, which converted to a fixed rate of 5.75% and are no longer backed by a credit facility that supported the original ratings. The ratings on the remarketed issue reflect the credit quality of Tucson Electric Power and Standard&Poor's recovery analysis. The stable outlook reflects our expectation that credit metrics will not weaken under
