Con Edison Comm Paper Rtd A-1, Bank Loan A+ by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 12/23/97--Standard & Poor's today assigned its 'A-1' commercial paper rating to Consolidated Edison This article is about the utility company in New York. For ComEd in Illinois, see Commonwealth Edison. Consolidated Edison, Inc. NYSE: ED is one of the largest investor-owned energy companies in the United States. Co. of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Inc.'s (Con Edison) new $500 million commercial paper program. Standard & Poor's has also assigned its single-'A'-plus rating to Con Edison's new $375 million unsecured five-year revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility and $125 million unsecured 364-day credit agreement. These facilities are used to support the commercial paper program, as well as for general corporate purposes. Con Edison's single-'A'-plus corporate credit rating was affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. . The long-term ratings outlook is stable. Con Edison's ratings reflect strong qualitative characteristics, including little asset concentration, solid nuclear operations, a lack of industrial exposure, and generally supportive state regulation. The company's rates are very high, however, due to high-cost generation, exceptionally high taxes, and commission-mandated expenditures. Moreover, the general weakness of the company's service territory will likely not sustain sales growth much greater than 1%. The Public Service Commission of New York's Sept. 23 restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). order was generally supportive of the company's credit profile, and includes strong provisions for the recovery of Con Edison's stranded costs. Though the order requires rate reductions for all classes, and the company intends to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to $1 billion of common equity, Con Edison's financial measures are expected to remain satisfactory for the current ratings. Under the restructuring order, Con Edison will also divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. at least 50% of its New York City-located generation assets, which should strengthen the company's business risk profile. The anticipated formation of a holding company in early 1998 will provide greater separation between the utility and the modest nonregulated operations. OUTLOOK: STABLE Ratings stability reflects the limited impact that the restructuring order is expected to have on Con Edison's ability to maintain a conservative financial profile commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with existing debt ratings. Con Edison is expected to be able to manage the earnings and cash flow impact of the proposed order by a continued focus on productivity improvements and by nonutility generation contract renegotiations or buyouts. -- CreditWire CONTACT: Ted Olshanski, New York (1) 212-208-1757 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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