American Water Works Company, Inc. Forms New Financing Subsidiary.Business Editors VOORHEES, N.J.--(BUSINESS WIRE)--June 26, 2000 American Water Works Company (NYSE NYSE See: New York Stock Exchange :AWK (Aho Weinberger Kernighan) A Unix programming utility developed in 1977 by Alfred Aho, Peter Weinberger and Brian Kernighan. Due to its unique pattern-matching syntax, awk is often used in data retrieval and data transformation. ) has announced the formation of a new wholly-owned subsidiary, American Water Capital Corp., a special purpose corporation that will serve as the primary funding vehicle for American Water Works Company and its twenty-five (25) utility subsidiaries. American Water Capital Corp. was assigned an A- corporate rating by Standard & Poor's (S&P) and Baa1 by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. . At the same time, S&P lifted a negative credit watch that previously had been assigned to three of American Water Works Company's operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. . The credit outlook for these three subsidiaries is now listed as stable by S&P. "The corporate ratings reflect the consolidated credit strength of American Water Works derived from its geographic diversity, stable customer base, supportive regulatory climate regulatory climate The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes. , high quality operations, and experienced management," said Ellen C. Wolf C. Wolf is the official mascot of the Erie SeaWolves, a Minor League Baseball team in Erie, Pennsylvania. The SeaWolves are the Double A affiliate of the Detroit Tigers Major League Baseball team. C. Wolf's History C. Wolf made his debut June 20, 1995, at Jerry Uht Park. , chief financial officer of American Water Works Company. American Water Works Company will replace multiple bilateral lines of credit currently held by its utility subsidiaries and consolidate the financing function at American Water Capital Corp. This consolidation will streamline the financing function, creating cash management efficiencies and a lower cost of capital for the utility subsidiaries. "By consolidating our utility financing requirements, American Water Capital Corp. will be able to access a broader investor base as well as gain the efficiencies that larger size financings are afforded in the capital markets," added Wolf. American Water Works Company is the largest and most geographically diverse investor-owned water utility enterprise based in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company provides water, wastewater and other water resource management services to more than 10 million people in 23 states. This release may contain certain forward looking statements involving known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. These factors include, among others, the following: general economic and business conditions; competition; success of operating initiatives, advertising and promotional efforts; existence of adverse publicity or litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; changes in business strategy or plans; quality of management; availability, terms and development of capital; business abilities and judgment of personnel; changes in, or the failure to comply with governmental regulations; and Year 2000 issues. |
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