DUFF & PHELPS: ORLANDO UTILITIES COMMISSION $135 MILLION WATER AND ELECTRIC SUBORDINATED REVENUE BONDS, SERIES 1993B RATED 'AA+'
CHICAGO, July 28 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA+' (Double-A-Plus) to Orlando Utilities Commission's (OUC) proposed offering of $135 million of water and electric subordinated revenue refunding bonds, Series 1993B. Proceeds primarily will be used for capital improvements to the electric and water system. The bonds are secured solely by a junior lien pledge of net revenues derived by the OUC from the operation of the water and electric system. The debt service reserve account, fully funded at time of issuance, requires that an amount equal to the lesser of 10 percent of the original proceeds, maximum annual debt service, or 125 percent of average annual debt service be maintained. OUC's electric and water utilities have demonstrated excellent operational and financial characteristics. Debt service has been maintained well above the minimum indenture levels (1.89X for all debt in fiscal 1992). OUC has a competitive cost structure, a diversified and growing service area, and well-maintained facilities. Base load growth will be met by construction of the 440 mw coal-fired Stanton Energy Center Unit No. 2. Construction began in March 1993, with commercial operation expected in June 1996. OUC will operate the new unit and will have a 71.59 percent ownership interest. Despite significant new money needs, coverages are expected to remain strong. OUC exercises full authority over its rates and operations, which are governed by a five-member independent commission. The possible closure of the Orlando-based Naval Training Center, OUC's largest water customer and second largest electric customer, is expected to occur in a gradual phase-out and is not expected to have a significant impact on OUC's credit quality. OUC supplies electric and water service to Orlando and contiguous areas in Orange County, Florida. Electric operations provide the bulk of operating revenue. OUC has full or partial ownership interests in five generating facilities and a diversified energy mix of coal, natural gas, nuclear, and oil. -0- 7/28/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: Orlando Utilities Commission ST: Florida IN: UTI SU: RTG
WB -- NY073 -- 6743 07/28/93 13:00 EDT
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|Date:||Jul 28, 1993|
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