SAN FRANCISCO (Standard&Poor's) Jan. 22, 2010--Standard&Poor's Ratings Services said today that it lowered its long-term rating to 'BBB-' from 'AA+' on Tucson Electric Power Co.'s (TEP; BB+/Stable) $130 million series 2008B tax-exempt senior unsecured revenue bonds issued through the Industrial Development Authority of the County of Pima, Ariz., reflecting the remarketing of the bonds, which converted to a fixed rate and are no longer supported by a letter of credit. Standard&Poor's also assigned a recovery rating of '2' to the bonds, reflecting our expectation of substantial (70%-90%) recovery, and removed its 'A-1+' short-term rating on the bonds, which reflected the credit support provided by the credit facility. "The ratings now reflect the credit quality
