DUFF & PHELPS: GEORGIA POWER COMPANY $75M 6.35 PERCENT FIRST MORTGAGE BONDS RATED 'A+'; $125M 7.55 PERCENT FIRST MORTGAGE BONDS RATED 'A+'
CHICAGO, July 27 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Georgia Power Company's offering of $200 million of first mortgage bonds. The two-part offering is comprised of $75 million of 6.35 percent first mortgage bonds due 2003 and $125 million of 7.55 percent first mortgage bonds due 2023. A continuation of solid improvement is anticipated at Georgia Power as cost control measures and a scaling-back of construction expenditures contribute to improved cash flows and financial protection measures. Importantly, earnings retention will be permitted by parent Southern Company, which will help to reduce debt and gradually strengthen the capital structure. An expected increase in coverages will be somewhat offset by temporary purchased capacity buy-backs which terminate in 1997. Georgia Power's cost structure appears advantageous in the increasingly competitive environment. Regulation in Georgia has been constructive in recent times and appears to be supportive of reasonably strong fundamentals for utilities in the state. Legislation has been approved for plant certification, which should reduce risk. The economy is stable. Growth in the Atlanta area will continue as the city prepares to host the 1996 Summer Olympics. Georgia Power Company, a subsidiary of Southern Company, provides electric service to most of Georgia. The affiliation with the Southern Company system is a positive. -0- 7/27/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (SO)
CO: Georgia Power Co. ST: Georgia IN: UTI SU: RTG
TS -- NY086 -- 6389 07/27/93 16:07 EDT
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|Date:||Jul 27, 1993|
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