Fitch Affirms Cinergy and Subsidiaries' Credit Ratings; Assigns Stable Outlook.Business Editors CINCINNATI--(BUSINESS WIRE)--June 20, 2002 Fitch today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. Cinergy Corp.'s (NYSE NYSE See: New York Stock Exchange :CIN CIN cervical intraepithelial neoplasia. Cervical intraepithelial neoplasia (CIN) A term used to categorize degrees of dysplasia arising in the epithelium, or outer layer, of the cervix. ) BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. + senior unsecured rating and an F2 rating on the company's commercial paper program. Fitch also changed the rating outlook to stable from negative. The ratings of Cinergy Corp.'s subsidiaries, The Cincinnati Gas & Electric Co. and PSI Energy, Inc., have also been affirmed and the outlook for those companies remains stable. "The affirmation A solemn and formal declaration of the truth of a statement, such as an Affidavit or the actual or prospective testimony of a witness or a party that takes the place of an oath. An affirmation is also used when a person cannot take an oath because of religious convictions. by Fitch of its ratings and the stable outlook for the company and its subsidiaries recognizes our commitment to credit quality, the steps we have taken to strengthen our balance sheet and the value of our balanced portfolio model," said R. Foster Duncan, executive vice president and chief financial officer. Fitch said that the change in Cinergy's rating outlook to stable from negative reflects the improvement in the company's balance sheet, management's integrated approach to balancing customer and supply portfolios, and the significant earnings and cash flow contribution of its regulated utility businesses. Cinergy's business model is based on a balanced, integrated portfolio consisting of two core businesses: regulated operations and energy merchant. Cinergy owns regulated delivery operations in Ohio, Indiana, and Kentucky that serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated operations own 6,000 megawatts of generation. Cinergy's energy merchant business is a Midwest leader in low-cost generation owning 7,000 megawatts of capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. . The "into Cinergy" power-trading hub is the most liquid trading hub in the nation. |
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