DUFF & PHELPS: CITY OF FARMINGTON, N.M. $154.540 MILLION 5-7/8 PERCENT POLLUTION CONTROL REFUNDING REVENUE BONDS, 1993 SERIES A RATED 'A+'
CHICAGO, June 3 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of A+' (Single-A-Plus) to the City of Farmington, New Mexico's issuance of $154.540 million 5 7/8 percent pollution control refunding revenue bonds (Southern California Edison Company Four Corners Project). The bonds will be secured by a like amount of Southern California Edison's first and refunding mortgage bonds. Proceeds will be used to refund higher cost outstanding pollution control revenue bonds originally issued to fund pollution control equipment at Units 4 and 5 at the Four Corners Generating Station. Southern California Edison is a well managed utility with a regulatory climate which generally has been constructive. The company has good cash flow and rate mechanisms that help stabilize earnings and reduce regulatory lag. Construction expenditures should remain relatively level and are expected to be funded largely from internal cash. A reduction in short-term debt will improve overall debt leverage as the company recovers its Palo Verde deferrals. Southern California Edison's most recent rate case treatment causes some concern. The California Public Utilities Commission chose not to recognize the company's large portfolio of purchased power obligations and the necessary higher equity ratio and/or return on equity to support credit fundamentals. Other risks include the company's relatively high customer rates in an increasingly competitive environment and the unstable financial strength of some of the other Palo Verde nuclear plant owners. Southern California Edison, the principal subsidiary of SCEcorp, provides electric service to approximately four million customers in a 50,000 square mile area of central and southern California. -0- 6/3/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (SCE)
CO: Southern California Edison ST: New Mexico, California IN: UTI SU: RTG
LD -- NY105 -- 4118 06/03/93 16:51 EDT
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|Date:||Jun 3, 1993|
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