Ratings of utility holding company FPL Group Inc. and its subsidiaries are on CreditWatch with negative implications following the announcement that the company will purchase an 88% interest in the 1,161 MW Seabrook nuclear power plant. Juno Beach, Fla.-based FPL Group has about $6.8 billion in outstanding debt. Subsidiaries include Florida Power&Light Co. and FPL Group Capital Inc. This acquisition is negative because it increases the risk profile of the group and its subsidiaries, and will initially increase the company's debt leverage. This is the first nuclear plant in FPL's portfolio of nonnregulated generating assets. The plant will not have any initial offtake contracts and will be managed as a merchant plant with a series of short-term contracts.
