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DUFF & PHELPS: COLUMBUS SOUTHERN POWER COMPANY PREFERRED STOCK REMOVED FROM RATING WATCH -- DOWN

 CHICAGO, Nov. 19 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has removed Columbus Southern Power Company's preferred stock from Rating Watch -- Down and reaffirmed the `BBB-' (Triple-B-Minus) rating.
 As a result of the recent Ohio Supreme Court ruling regarding Zimmer plant investment, Columbus Southern Power was required to take an after-tax write-off of approximately $145 million. Third quarter 1993 results were restated to reflect this charge and resulted in a retained earnings balance of about $20 million, after accounting for full payment of third quarter preferred dividends (no common dividends were paid to parent American Electric Power Company, Inc.). We expect that the level of retained earnings will build with quarterly earnings. We are not aware of any other pending material issues which could adversely affect retained earnings sufficient to jeopardize the future declaration and payment of preferred dividends. Quantative measures are appropriate for the rating and credit quality is expected to improve slowly over time.
 Columbus Southern Power Company serves approximately 570,000 customers in central and southern Ohio. The company owns a 25.4 percent share of Zimmer which was converted from a nuclear facility to a 1,300 mw coal-fired plant.
 -0- 11/19/93
 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
 (AEP)


CO: Columbus Southern Power Company ST: Ohio IN: UTI SU: RTG

LD -- NY074 -- 4477 11/19/93 16:31 EST
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Publication:PR Newswire
Date:Nov 19, 1993
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