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CINCINNATI GAS & ELECTRIC RATINGS AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

 CINCINNATI GAS & ELECTRIC RATINGS AFFIRMED BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 28 /PRNewswire/ -- Cincinnati Gas & Electric Co.'s (NYSE: CIN) ratings are affirmed as follows: $1.6 billion first mortgage bonds, 'BBB+'; $410 million preferred stock, 'BBB'; and commercial paper, 'F-2'. The credit trend is changed to stable from declining.
 The ratings reflect the company's conservative capital structure, efficient power generation, a recent Ohio rate order and management's announced plans to defer $400 million in capital expenditures and to significantly reduce operating expenses.
 The company will phase into rates over three years the $114 million rate increase awarded in May by the Ohio commission. This is Cincinnati's first rate hike since 1984 and places most of the company's investment in Zimmer Station into rate base. Fitch assumes Cincinnati will appeal the commission's disallowing $232 million of Zimmer costs from rate base and that this expected appeal will remain unresolved until late 1993, at the earliest.
 Over the next 12 months the company credit protection features should be stable. Thereafter the trend could improve depending on achievement of operating cost reductions, elimination of up to 800 work positions, and the outcome of 2 rate requests aggregating $136 million to be filed in Ohio.
 The company is an efficient and low cost producer of coal fired electric energy. The clean air compliance program proposed by Cincinnati is feasible and inexpensive when compared with programs underway by many neighboring Mid-west utilities. The company should retain its competitive posture and operations have been enhanced by the 1992 addition of 5 gas fired peaking generation units.
 -0- 8/28/92
 /CONTACT: John Watt of Fitch, 212-908-0523/
 (CIN) CO: Cincinnati Gas & Electric Co. ST: Ohio IN: UTI SU: RTG


TM -- NY073 -- 4640 08/28/92 17:37 EDT
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Publication:PR Newswire
Date:Aug 28, 1992
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