Centennial Energy Holdings' CP Prog Is Rated By S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 8/12/98-- Standard & Poor's today assigned its 'A-1' commercial paper rating to the commercial paper program of Centennial Energy Holdings Inc., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of MDU (1) (Multiple Dwelling Unit) A commercial or residential building with multiple offices or apartments. See BLEC. (2) (Multiply-Divide Unit) A high-speed circuit that performs multiplication and division within the CPU. Resources Group Inc. (MDU; A/Stable/A-1). Proceeds from the issuance will be used for working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. and acquisition-related bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. . The consolidated group strength of MDU and its holdings, including Montana Dakota Utilities Co. and Centennial reflects an average business profile and strong financial measures. Centennial's holdings include the Williston Basin Interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. Pipeline Co., Knife River Knife River A river, about 265 km (165 mi) long, of west-central North Dakota flowing east to the Missouri River. Corp., and the Fidelity Oil Group. These businesses contributed about 68% of MDU's consolidated earnings in 1997, and are expected to contribute nearly 80% by 2002. Centennial's average business profile is supported by the strong operations of its regulated interstate pipeline business at Williston Basin. Centennial's pipeline company enjoys a strong competitive positive, highlighted by stable revenues and cash flow, and integration with affiliate gas distribution operations. Oil and natural gas exploration and production activities are conducted by Centennial's Fidelity Oil subsidiary. Notwithstanding current weak commodity prices (which recently led to a $20 million after-tax write-down) oil and gas activity is expected to increase. Indeed, the company has assumed an aggressive acquisition stance and is spending heavily to expand production and lower-cost reserves. Despite the company's current growth plans, credit quality is expected to continue to be supported by a management team that is committed to a conservative financial profile and balance sheet. Centennial's Knife River subsidiary houses the company's construction materials and coal mining businesses. Aware of the diminishing and uncertain revenue base at its coal mines, the company has leveraged its mining expertise into increased participation in the construction materials business. Although demand for construction materials is tied to the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. construction industry, risk is in part mitigated by the company's geographic diversity, its strong market positions in regions that are experiencing robust growth, and lack of customer concentration. Overall, Centennial's above average financial profile is anchored by a strong and conservative balance sheet. Despite Centennial's aggressive growth trajectory Trajectory The curve described by a body moving through space, as of a meteor through the atmosphere, a planet around the Sun, a projectile fired from a gun, or a rocket in flight. the company's balance sheet is expected to remain fairly conservative, Standard & Poor's said.---CreditWire
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