DUFF & PHELPS UPGRADES ALABAMA POWER COMPANY FIRST MORTGAGE BONDS TO 'A+'
CHICAGO, July 28 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has raised the rating of Alabama Power Company's first mortgage bonds to 'A+' (Single-A-Plus) from `A' (Single-A), and non-collateralized pollution control revenue bonds to `A' (Single-A) from `A-' (Single-A- Minus). The preferred stock rating has been reaffirmed at `A-' (Single-A-Minus). Gradual improvement in Alabama Power's overall credit fundamentals has been achieved during the past few years. The company has benefited from aggressive cost control measures, moderate sales growth, a healthy service territory economy, and strong generating plant performance. The Rate Stabilization and Equalization mechanism has helped to ensure the stability of rates, earnings and coverages. Maintenance of the improved level of interest coverages and the well-balanced capital structure is anticipated with minimal need for rate relief. Credit protection measures may experience some temporary pressures with the planned construction of several combustion turbine generating units for peaking capacity requirements. The first unit is scheduled for operation in 1995. The Alabama Public Service Commission has pre-approved plans for the construction of the units. Little additional spending will be necessary for compliance with acid rain legislation. Alabama Power, a subsidiary of Southern Company, provides electric service to 1.1 million customers in all but the northern-most part of Alabama. -0- 7/28/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (SO)
CO: Alabama Power Company ST: Alabama IN: UTI SU: RTG
PS -- NY070 -- 6736 07/28/93 12:46 EDT
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|Date:||Jul 28, 1993|
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