Correction: Fitch Rates Mason County, West Virginia Pollution Control Revs Series L.Business Editors NEW YORK--(BUSINESS WIRE)--April 30, 2003 (This is an amended version of a press release issued earlier today, containing revised sale date information on the bonds, which is the week of April 28, not April 12.) Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. assigns a 'BBB+' rating to Mason County, WV's (the county) pollution control revenue bonds (Appalachian Power Company Project) $100,000,000 series L due 2022. Principal and interest on the bonds are secured by a pledge of payments to be made to the county under the terms of an Agreement of Sale between the county and Appalachian Power Company (APC (1) (American Power Conversion Corporation, West Kingston, RI, www.apcc.com) The leading manufacturer of UPS systems and surge suppressors, founded in 1981 by Rodger Dowdell, Neil Rasmussen and Emanual Landsman, three electronic power engineers who had worked at MIT. ). Fitch rates APC's outstanding senior unsecured debt 'BBB+'. The bonds are scheduled to sell the week of April 28 via negotiation by Goldman Sachs & Co. The Rating Outlook for APC is Stable. The rating is based upon the credit quality of APC, which reflects the company's strong cash flow and moderate leverage. The ratings also consider the effect of its affiliation with parent American Electric Power American Electric Power (NYSE: AEP) is a major investor-owner electric utility in various parts of the United States. It is headquartered in Columbus, Ohio. It serves parts of 11 states, and is currently the largest electricity generating utility in the United States. Company (AEP AEP - Application Environment Profile ), which provides both benefits and risks. The primary credit concern is APC's large industrial load in cyclical industries since these customers account for 51% of revenues and are most susceptible to economic downturns. Switching to alternative energy providers, due to the commencement of retail competition in APCO's Virginia service territory, is not of major concern because of the company's low rates, reasonable restructuring plan and the sourcing and marketing capability of parent AEP. APCO's affiliation with AEP enables the company to participate in the AEP power pool and to benefit from AEP's expertise in wholesale energy markets. Conversely, APCO APCO Association of Public Safety Communications Officials APCo Appalachian Power Company (Columbus, OH) APCO Air Pollution Control Officer APCO Alabama Power Company APCO Associated Public Safety Communications Officers, Inc. is indirectly exposed to AEP's unregulated business activities. Given the interrelationship in·ter·re·late tr. & intr.v. in·ter·re·lat·ed, in·ter·re·lat·ing, in·ter·re·lates To place in or come into mutual relationship. in between APCO and AEP, any deterioration in the credit quality of AEP (senior unsecured debt rated 'BBB' by Fitch) could impair the ratings of APCO. In addition, APCO's ratings are constrained by those of AEP due to AEP's highly centralized electric and treasury operations. APCO, 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 AEP, is engaged in the generation, transmission and distribution of electric power to approximately 909,000 retail customers in Virginia and West Virginia, and wholesale power to other utilities and municipalities in Virginia, West Virginia and Tennessee. |
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