Standard&Poor's Ratings Services today assigned its 'BBB-' rating and a recovery rating of '1' to Tucson Electric Power Co.'s (TEP; BB/Stable/B-2) $491 million senior secured facility, due August 2011. The rating is two notches above TEP's 'BB' corporate credit rating and, along with the '1' recovery rating, reflects a high expectation of full recovery of principal in the event of a default. Certain revisions to the facility will not become effective until approval is given by the Arizona Corporation Commission (ACC). A ruling is expected this fall. The rating action follows the Aug. 11 amendment and restatement of TEP's $401 credit agreement that was originally executed in May 2005. The 'BB' corporate credit rating on TEP reflects the
