DUFF & PHELPS: HYDRO-QUEBEC SENIOR DEBT REAFFIRMED AT "AA"
CHICAGO, July 6 /PRNewswire/ -- Duff & Phelps Credit Rating Co. announced today that it has reaffirmed the ratings on Hydro-Quebec's outstanding debt securities. The debentures and medium-term notes are rated "AA" (Double-A) and the commercial paper is rated Duff 1+ (One-Plus). The ratings reflect expectations that Hydro Quebec's credit fundamentals will continue at or near their presently strong levels. Hydro Quebec's hydroelectric resources provide a competitive advantage relative to the cost of electric capacity in the U.S. and elsewhere in Canada. This together with relatively small planned rate increases should allow the maintenance of appropriate coverages and capital ratios. Hydro Quebec has implemented progressive cost control programs in response to a reduced level of rate increases and the debt guarantee fee instituted in 1992. However, the economy in Quebec, neighboring provinces, and the northeast United States will continue to have a moderating effect on sales gains and profit margins. Capital expenditures are projected to remain relatively high, peaking in 1993-94, with the completion of three new generating stations by 1995. Slower growth and reduced export demands could necessitate delays in the construction of facilities scheduled for later in the decade; Hydro-Quebec's programs have significant levels of flexibility to accommodate required delays. Lost revenues from the canceled 1,000 mw Grand Baleine contract with the New York Power Authority are expected to be offset somewhat by the postponement of investment in new plant, but will likely put some increased pressure on Hydro-Quebec's domestic rates for several years when the New York load was to have been served from resources already in place. Hydro-Quebec is a corporation owned entirely by the government of the Province of Quebec. Principal and interest payments on Hydro- Quebec's debt are guaranteed by the Province. -0- 7/6/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: Hydro-Quebec ST: Quebec IN: UTI SU: RTG
TS-MG -- NY034 -- 8625 07/06/93 12:35 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 6, 1993|
|Previous Article:||DUFF & PHELPS: GREAT AMERICAN LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY RATED 'A+'|
|Next Article:||AMERICAN AIRLINES ANNOUNCES JUNE TRAFFIC|