Dive Summary:

• Moody’s Investors Service became the second credit rating agency to downgrade the utility; the downgrade came just before Mississippi Power attempted to borrow $200 million as part of its regular business.
• Mississippi Power is still rated as an investment-grade A3, but Moody’s said that the utility has a negative outlook for the future, meaning more downgrades are possible.
• In addition to the cost of building a new power facility, both credit rating agencies also cited the recent denial of a $55 million rate increase Mississippi Power sought as a contributing factor to the downgrade.

From the article:

Lower credit ratings may be causing Mississippi Power Co. to pay more to borrow money.

Moody's Investors Service became the second credit rating agency to downgrade Mississippi Power last week, days before the unit of Atlanta-based Southern Co. returned to the bond market to borrow $200 million. The company borrows money frequently as a normal part of its business. Some proceeds will go toward the $4.8 billion power plant the company is building in Kemper County. ...