Printer Friendly

DUFF & PHELPS RAISES RATING OF PACIFIC ENTERPRISES' PREFERRED STOCK TO 'BBB-'

 CHICAGO, Feb. 11 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has raised the rating of Pacific Enterprises' preferred stock to "BBB-" (Triple-B-Minus) from BB+' (Double-B-Plus). The upgrade affects approximately $258 million of securities. Subsidiary Southern California Gas Company's first mortgage bond and preferred stock ratings are reaffirmed at "A+" (Single-A-Plus) and commercial paper at Duff 1+ (One-Plus).
 Pacific Enterprises essentially completed its corporate restructuring in 1992 with the sale of its major nonutility businesses. Proceeds from the sale of Thrifty Corporation and Pacific Enterprises Oil Company have been used to substantially reduce debt. Debt reduction is anticipated to continue through cash received from utility dividends, tax benefits, and proceeds from recently completed asset sales. Pacific Enterprises recently adopted a quasi-reorganization which eliminates a retained earnings deficit and adjusts non-utility assets and liabilities to fair value. Following this action, no further write-downs are expected.
 Pacific Enterprises will return its focus to its core business, Southern California Gas Company. Natural gas distribution activities should continue to provide a strong earnings base. The cash dividend from Southern California Gas is sufficient to cover Pacific Enterprises' interest expense and preferred dividends. Moreover, a plan to refinance Pacific Enterprises' debt, reduce corporate overhead, and improve financial flexibility is expected to support ongoing financial improvement.
 -0- 2/11/93
 /CONTACT: David W. Eisinger, CFA of Duff & Phelps, 312-368-3145/
 (PET)


CO: Pacific Enterprises ST: California IN: UTI SU: RTG

TS -- NY051 -- 5731 02/11/93 13:00 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 11, 1993
Words:240
Previous Article:VIRGINIA ELECTRIC AND POWER COMPANY $100 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'A+'; $40 MILLION PREFERRED STOCK RATED 'A'
Next Article:BANKINTER SHAREHOLDERS APPROVE NEW 5 PERCENT CAPITAL REDUCTION
Topics:


Related Articles
DUFF & PHELPS RAISES RATING UPGRADE GEORGIA POWER COMPANY (PARENT: SOUTHERN COMPANY)
DUFF & PHELPS LOWERS RATINGS OF ARKLA DEBT AND PREFERRED STOCK
DUFF & PHELPS ASSIGNS RATING OF 'BBB-' TO THE WILLIAMS COMPANIES NORTHWEST PIPELINE RATED 'BBB'
DUFF & PHELPS ADDS PACIFIC ENTERPRISES' PREFERRED STOCK TO RATING WATCH -- FAVORABLE
DUFF & PHELPS RAISES MISSISSIPPI POWER & LIGHT COMPANY PREFERRED STOCK TO 'BBB-'
DUFF & PHELPS UPGRADES ENRON CORP.
DUFF & PHELPS CREDIT RATING CO. UPGRADES NORTHERN INDIANA PUBLIC SERVICE COMPANY
DUFF & PHELPS UPGRADES NIPSCO INDUSTRIES
DUFF & PHELPS CREDIT RATING CO. ANNOUNCES RATING ACTIONS ON SOUTHERN CALIFORNIA GAS COMPANY AND PACIFIC ENTERPRISES
DUFF & PHELPS CREDIT RATING CO. ANNOUNCES RATING DOWNGRADE OF THE WILLIAMS COMPANIES, INC., UPGRADE OF TRANSCO ENERGY COMPANY AND SUBSIDIARIES

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters