DUFF & PHELPS: ALABAMA POWER COMPANY$38 MILLION CUMULATIVE PREFERRED STOCK RATED 'A-'
CHICAGO, Aug. 11 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A-' (Single-A-Minus) to Alabama Power Company's proposed offering of 1.52 million shares of class A cumulative preferred stock, par value $1 per share (stated capital $25 per share). Alabama Power's credit fundamentals have improved over the past few years. The company has benefited from aggressive cost control measures, a healthy service territory economy, and strong generating plant performance. The Rate Stabilization and Equalization mechanism has helped to ensure the stability of rates, earnings, and coverages. Maintenance of the improved level of interest coverages and the well- balanced capital structure is anticipated. The company's need for rate relief is minimal. Credit protection measures may experience some temporary pressures with the planned construction of several combustion turbine generating units for peaking capacity requirements. The first unit is scheduled for operation in 1995. The Alabama Public Service Commission has pre- approved plans for the construction of the units. Alabama Power, a subsidiary of Southern Company, provides electric service to 1.1 million customers in all but the northern-most part of Alabama. -0- 8/11/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (SO)
CO: Alabama Power Company ST: Alabama IN: UTI SU: RTG
TM -- NY089 -- 1843 08/11/93 16:37 EDT
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|Date:||Aug 11, 1993|
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