Columbia Energy Affirmed `A'; Off Fitch IBCA Alert-Neg.NEW YORK--(BUSINESS WIRE)--Aug. 18, 1999-- Columbia Energy Group's (Columbia) $2 billion outstanding `A' rated debentures and $850 million `F1' rated 4(2) commercial paper program are affirmed and removed from Fitch IBCA's RatingAlert negative. The securities were put on RatingAlert negative on July 15, 1999, following an announcement by the company to materially expand its open market common share repurchase plan share repurchase plan A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and . Columbia was originally placed on RatingAlert evolving on June 8, 1999, as a result of NiSource Inc.'s unsolicited offer to purchase Columbia. Today's rating affirmation reflects Columbia's standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. credit profile factoring in the completion of its $500 million repurchase plan over the next 12 months. While the execution of a common share repurchase plan utilizing borrowed funds to finance the purchases would result in increased debt leverage, most key credit measures should remain consistent with Columbia's current `A' rating. Total debt to total capitalization Total capitalization The total long-term debt and all types of equity of a company that constitutes its capital structure. total capitalization See capitalization. could temporarily peak at near 60%, however, pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern interest coverage and cash interest coverage ratios continue to be relatively strong. In addition, the company's five-year capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. plan is expected to cause minimum financial stress and should allow for gradual balance sheet strengthening. For a copy of Fitch IBCA's latest research report on Columbia dated July 8, 1999, visit the agency's web site at www.fitchibca.com. |
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