TECO Energy, Inc.

--Issuer Default Rating (IDR) 'BBB-';

--Senior unsecured 'BBB-'.

TECO Finance, Inc.

--IDR 'BBB-';

--Senior unsecured 'BBB-'.

Tampa Electric Company

--IDR 'BBB';

--Senior unsecured 'BBB+';

--Short-term IDR 'F2';

--Commercial paper 'F2'.

The Rating Outlook is Stable. Approximately $3.2 billion of debt is affected by today's rating actions.

TECO's ratings are supported by the underlying strength of its regulated electric and gas utility subsidiary, from which it derives stable and consistent cash distributions to meet parent company funding requirements. Tampa Electric continues to post strong credit metrics, maintain solid operating performances, and benefit from a constructive regulatory environment in Florida, as evidenced by the recent rate orders and effective periodic rate adjustment mechanisms. Tampa Electric is able to recover fuel and environmental compliance costs through periodic rate adjustment mechanisms.

Fitch's primary rating concerns relate to slowing customer growth rates at Tampa Electric, which declined to 0.1% in 2008 as a result of the weak state economy, and increasing operating costs at the utilities. Fitch notes that Tampa Electric has postponed capital spending on capacity additions to manage the utility to the reduced customer growth. Other rating concerns relate to cash flow deterioration at TECO Guatemala because of the adverse rate order in 2008, unplanned outages at the San Jose Plant, uncertainty over the extension of the Alborada purchased power agreement, and the potential for deferred or renegotiated contracts because of declining market prices, higher production costs, and slumping coal demand at TECO Coal. Together, TECO Coal and TECO Guatemala provide approximately 20% of consolidated EBITDA. As such, TECO's ratings are driven by the utilities.

Tampa Electric's credit rating is supported by constructive regulation in Florida. Credit ratios at the utility should benefit from higher base rates in 2009 and 2010 as a result of the $138 million rate order issued in March 2009 and the expiration of an affiliate waterborne transportation agreement that reduced annual net income by $10 million in prior years. Fitch expects coverage ratios to remain relatively strong with FFO coverage of close to 5.0 times (x) in 2009.