DUFF & PHELPS: ILLINOIS DEVELOPMENT FINANCE AUTHORITY $60 MILLION POLLUTION CONTROL REVENUE REFUNDING BONDS RATED 'AA'
CHICAGO, Aug. 23 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to the Illinois Development Finance Authority's two-part offering of pollution control revenue refunding bonds, 1993 Series C-1 and C-2 (Central Illinois Public Service Company) (CIPS). The Series C-1 is a $35 million issue and will mature in 1998; Series C-2 is a $25 million issue maturing in 2026. Principal and interest will be paid solely from an assignment and pledge of revenues derived from a loan agreement between the Authority and CIPS. Proceeds will be used to refund outstanding pollution control revenue bonds. CIPS has a conservative capital structure and solid financial protection measures. Coverages are expected to remain strong and benefit from the company's extensive refinancing program. The company has adequate generating capacity; expenditures to comply with the Clear Air Act should also be relatively small. CIPS plans to use low-sulfur coal to comply with the act's provisions. On April 24, the labor contract extensions representing 1,500 workers in two separate unions expired. The company decided to lock-out the union employees on May 20 citing intentional work slow-down practices and refusals to work overtime. Since the lockout, a tentative agreement has been reached between CIPS and one of the unions, IUOE Local No. 148 (500 workers), which is currently on strike. The other union, IBEW Local No. 702, remains locked out. CIPS is operating its power stations and distribution systems with non-union employees and management. Central Illinois Public Service, the primary subsidiary of CIPSCO Incorporated, provides electric and gas service in a 20,000 square mile region of central and southern Illinois. -0- 8/23/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: Illinois Development Finance Authority ST: Illinois IN: SU: RTG
MP -- NY044 -- 5060 08/23/93 12:50 EDT
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|Date:||Aug 23, 1993|
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