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DUFF & PHELPS: CENTRAL ARIZONA WATER CONSERVATION DISTRICT CONTRACT REVENUE BONDS UPGRADED TO 'AA'

 CHICAGO, March 15 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has raised the rating of Central Arizona Water Conservation District's contract revenue bonds, Series A 1990 and Series B 1991, to "AA" (Double-A) from "AA-" (Double-A-Minus). A rating of "AA" also is assigned to the proposed offering of $113.475 million, Series A 1993 contract revenue bonds, and $2.410 million subordinate capital appreciation bonds, Series A 1993. Proceeds will be used to refund a portion of the 1990 Series A revenues bonds.
 The revenue bonds are supported by an unconditional take-or-pay agreement with the Salt River Project (SRP). The agreement relates to the 150 mw of allocated capacity of Navajo surplus associated with the United States Bureau of Reclamation's 24.3 percent participation in the Navajo coal-fired generation station.
 SRP's overall credit profile has strengthened over the past few years. The regional economy has improved, stabilizing at a higher growth rate than had previously been experienced. Cost cutting programs at SRP have been effective. The cost of energy to SRP is very competitive and advantageous. Rates by Central Arizona Water Conservation District are competitive for the southwest region. Additionally, the seasoning of the transaction somewhat reduces risk.
 SRP has covenanted to maintain rates which, along with other funds, will provide sufficient revenues to meet its obligations under the power sales contract.
 The bonds are secured by a stream of additional rate component revenues received by the trustee under the take-or-pay contract on the 150 mw of capacity being purchased by SRP. The bonds are not general obligations of the district and have no claim on its water or tax revenues. The Central Arizona Water Conservation District was created by the Arizona legislature in 1971 and is the contracting agent for the Central Arizona Project and the Navajo generating surplus. The Central Arizona Project is designed to bring the Colorado River water to central and southern Arizona.
 -0- 3/15/93
 /CONTACT: William A. Abrams of Duff & Phelps, 312-368-3112/


CO: Central Arizona Water Conservation District ST: Arizona IN: UTI SU: RTG

GK -- NY089 -- 6242 03/15/93 17:08 EST
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Publication:PR Newswire
Date:Mar 15, 1993
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