TEXT-Fitch release on Entergy Mississippi

(The following statement was released by the rating agency)

May 9 - Fitch has affirmed the Issuer Default Rating (IDR) and outstanding
debt ratings for Entergy Mississippi, Inc. (EMI) as follows:
--IDR at 'BBB-';
--Senior secured at 'BBB+';
--Preferred stock at 'BBB-'.
Approximately $695 million of debt is affected. The Rating Outlook is Stable.
EMI's ratings reflect its constructive regulatory environment, and stable
credit metrics. In 2007, funds from operations (FFO)-to-interest coverage was
5.7 times (x), and total debt-to-FFO was 3.2x. Credit metrics weakened in 2005
and 2006 due to the damage caused by hurricane Katrina. EMI's ratings are
linked to the credit profile of Entergy Corp. (ETR; IDR rated 'BBB-' with an
Evolving Rating Outlook by Fitch) and affiliate utilities through participation
in the Entergy system money pool and through a variety of contractual
arrangements.
The Stable Rating Outlook is based on Fitch's expectation that EMI's credit
metrics will be adequate for its rating category. For 2008-2009, Fitch projects
that EMI's FFO interest coverage will range from 5.0x to 6.0x, while
debt-to-FFO will range from 3.0x to 4.0x. The Stable Rating Outlook also
assumes there is no negative effect from ETR's proposed spin-off of its
merchant nuclear assets. Should the spin-off improve ETR's credit quality,
Fitch may upgrade EMI's ratings or Outlook.
EMI is a regulated utility that provides electric service to 432,000 customers
located in western and southwestern Mississippi.
(New York Ratings Team)