(The following statement was released by the rating agency)NEW YORK, April 01 (Fitch) Fitch Ratings has assigned an 'A+' rating to MidAmerican Energy Company's (MEC) $850 million issuance of first mortgage bonds. Proceeds will be used to repay maturing senior notes and for general corporate purposes. The Rating Outlook for MEC is Stable.KEY RATING DRIVERS:--MEC is ring-fenced by a special purpose entity to preserve credit quality.--The financial strength of its ultimate corporate parent facilitates flexibility with regard to dividends and earnings retention. --Solid financial metrics.--Balanced regulatory environment.--Manageable funding needs.--Sufficient liquidity.The ratings and Stable Outlook reflect the utility's relatively low business risk profile, solid credit metrics, and a constructive regulatory environment in Iowa. MEC is a subsidiary of MidAmerican Funding, LLC (MF; 'BBB+' IDR, Stable Outlook) which, in turn, is owned by intermediate holding company MidAmerican Energy Holding Company (MEHC; 'BBB+' IDR, Stable Outlook).  Berkshire Hathaway Corp. (BRK; 'AA-' IDR, Stable Outlook) owns 90% of MEHC.  The ownership structure provides greater flexibility compared to most operating utilities, in large part due BRK's large cash position and, as a direct result, lesser dependence on dividends and all else equal greater retained earnings and equity balances.  Fitch expects financial metrics to remain comparable to, or slightly ahead of guideline metrics for MEC's risk profile and rating category.  In 2013, MEC's respective funds from operations (FFO)-based coverage and leverage ratios were 5.9x and 30.5%.  While earnings have been pressured by a sluggish cyclical recovery and low wholesale power prices, FFO benefits from bonus depreciation and production tax credits. Commodity price risk at MEC is mitigated by the utility's long generating capacity position and commission approved energy adjustment mechanism. Fitch's ratings and Stable Rating Outlook for MEC considers the balanced regulatory compact in Iowa and the utility's competitive rates. On March 17, 2014, the Iowa Utilities Board (IUB) authorized a multi-step $263.6 million rate increase.  The IUB authorized rate increase represents virtually the entire $266.2 million rate increase requested by the company.  The settlement is silent on traditional rate case parameters including return on equity (ROE) and the rate increase will be phased-in over approximately three-years. The commission also authorized slightly modified versions of company-requested energy and transmission clauses, which allow contemporaneous recovery of covered costs outside of general rate case proceedings.The settlement also includes a revenue sharing mechanism based on specific ROE hurdles. While base rates are effectively frozen through Dec. 31, 2017, MEC is permitted to file a general rate case if projected ROE falls below 10%.The continuation of a constructive regulatory compact in Iowa is critical in Fitch's view given the utility's significant capital spending projections 2014 - 2017, including meaningful prospective investment in wind generation, transmission and environmental remediation. At the end of 2013, MEC had $194 million of cash and cash equivalents on its balance sheet, borrowing availability under its committed bank facilities of $410 million and resulting, combined liquidity of slightly more than $600 million. Fitch believes MEC maturities are manageable with approximately $776 million of debt expected to mature in 2014 and 2015. RATING SENSITIVITIES:--A positive rating action for MEC appears remote at this juncture given its already strong credit ratings.--A negative rating action could be triggered by adverse changes to Iowa regulation or a significant deterioration in MEC's credit metrics.Contact:Primary AnalystPhilip W. Smyth, CFASenior DirectorFitch Ratings, Inc.One State PlazaNew York, NY 10004+1-212-908-0592Secondary AnalystRoshan D. BainsSenior Director+1-212-908-0531Committee ChairpersonGlen GrabelskyManaging Director+1-212-908-0577Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: brian.bertsch@fitchratings.com.Additional information is available at '
  www.fitchratings.com'.
   Applicable Criteria and Related Research:-'Corporate Rating Methodology', Aug. 5, 2013;-'Rating U.S. Utilities, Power and Gas Companies: Sector Credit Factors', March 11, 2014;-'Recovery Ratings and Notching Criteria for Utilities', Nov. 20, 2013.Applicable Criteria and Related Research: Corporate Rating Methodology: Including Short-Term Ratings and Parent and Subsidiary Linkage
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715139
 Rating U.S. Utilities, Power and Gas Companies (Sector Credit Factors)
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=735155
 Recovery Ratings and Notching Criteria for Utilities 
  http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=722085
 Additional Disclosure Solicitation Status 
  http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=825777
 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.