OREANDA-NEWS. Fitch Ratings has affirmed the following Georgia Transmission Corporation (GTC) ratings:

--\$94.5 million Development Authority of Burke County pollution control revenue bonds (Georgia Transmission Corporation Vogtle Project), series 2012, at 'AA-';
--\$275 million commercial paper (CP) program at 'F1+'.

REMARKETING

The series 2012 bonds will be remarketed on May 1, 2015. During the new calculation period ending May 3, 2018, the bonds will bear interest at a fixed term rate to be determined.

The Rating Outlook is Stable.

SECURITY

The pollution control revenue bonds are secured by a first lien on substantially all of GTC's assets, including its physical facilities and transmission service agreements (TSAs). Proceeds from the remarketing will be the sole source of funds available to pay the purchase price of the bonds.

The CP notes are general unsecured obligations of GTC.

KEY RATING DRIVERS

ESSENTIAL SERVICE PROVIDER: GTC's more than \$2 billion of total assets and participation in the state's Integrated Transmission System (ITS) make its transmission network an essential part of the Georgia electric infrastructure.

LONG-TERM CONTRACTS: Take-or-pay, joint and several transmission service agreements with its member cooperatives extend through December 2060, providing GTC with a reliable revenue stream for the long term.

STABLE MEMBER BASE: Largely residential customers covering much of the state account for two-thirds of GTC's members' annual sales. Member cash flow metrics remain steady.

PREDICTABLE MARGINS: Substantially all of GTC's revenue requirements are based on predictable, fixed cost expenses and revenues are not dependent upon usage.

MODEST FINANCIAL RATIOS: Margins provide slim coverage protection, but are offset by GTC's low-risk transmission business, favorable revenue profile and its various sources of liquidity.

GOOD LIQUIDITY: The commercial paper (CP) program is supported by GTC's ample liquidity sources (including two revolving credit agreements) that support its 'F1+' rating.

RATING SENSITIVITIES

LOW-RISK OPERATING PROFILE: GTC's low-risk operating profile, long-term contracts, and state-wide residential service territory should provide it with long-term rating stability.

CREDIT PROFILE

GTC is a not-for-profit corporation providing transmission services to 38 distribution cooperatives (organized as electric membership corporations) in the state of Georgia and to OPC. The corporation's members provide electric distribution services to a combined 1.8 million customers, or approximately 4.2 million people.

STABLE FINANCIAL OPERATIONS

GTC's financial metrics continue their trend of stability, and Fitch has comfort from the predictability of the corporation's cash flows. Slim debt service coverage ratios averaged just 1.2x over the past three years. However, tighter margins are normal for low-risk transmission providers.

GROWING ASSETS

GTC has over \$2 billion of assets and owns 3,172 miles of high voltage transmission power lines and 669 substations throughout Georgia, comprising its percentage investment of the ITS. Over the past five years, property additions averaged approximately \$114 million per year. For 2015 through 2024, approximately \$1.4 billion is expected to be spent on new transmission facilities and upgrades to existing facilities.

GTC currently makes parity payments to the other ITS members' since the corporation's proportionate usage of ITS assets for its member systems' loads exceeds its investment in the system. This is indicative of load growth in GTC's member regions. GTC is planning new transmission projects to increase its percentage investment in ITS assets and reduce the projected parity expense in future periods. For 2015, the corporation's budgeted transmission rate is \$1.56 per KW/month.

FAVORABLE CUSTOMER PROFILE

The corporation's customer composition enhances revenue stability, with residential sales comprising over two-thirds of GTC's members' total. In addition, only three members individually account for more than 10% of GTC's revenues, thereby limiting customer concentration.

COMMERCIAL PAPER LIQUIDITY SUPPORT

The National Rural Utilities Cooperative Finance Corporation (CFC) led \$275 million revolving credit agreement, together with GTC's unrestricted cash and an additional \$250 million CoBank led revolver, provide ample coverage of the maximum amount of the corporation's CP program, as required by Fitch.

The CFC and CoBank led revolvers are for general corporate purposes. However, in practice GTC limits total draws by the amount of outstanding CP notes, as outlined in the 'Financial Condition' section of its audit. GTC's goal is to maintain adequate financial support for the program at all times. The two credit facilities extend to 2018.