Fitch Affirms San Antonio, TX CPS $350MM CP Notes `F1+'.Business Editors
NEW YORK--(BUSINESS WIRE)--Oct. 24, 2000
Fitch affirms the `F1+' rating on City Public Service of San Antonio's, TX. (CPS) $350 million electric and gas system commercial paper (CP) notes, series A. Liquidity support is provided through a $350 million revolving line of credit Revolving line of credit
A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. from a bank group consisting of: Morgan Guaranty Trust Co. of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ; The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007. The bank now continues under the new name of The Bank of New York Mellon Corporation. ; Landesbank Baden-Wurttemberg; and Westdeutsche Landesbank Girozentrale. The notes are payable as subordinate obligations. J.P. Morgan & Co. and Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. are the CP dealers.
The rating reflects CPS' sound financial management, low debt burden, efficient generating resources, and retail rates among the lowest in the region. Gross revenues totaled more than $1 billion in fiscal 2000 comprised of 86% electric, 10% gas and 4% interest income. In addition, financial results posted very strong debt service coverage of 2.61 times, equity of about 56% and 81 days of operating cash on hand. Additional credit strengths include a diverse customer base with electric revenues consisting of 47% residential, 39% commercial/industrial, and 14% other, and strong economic indicators Economic indicators
The key statistics of the economy that reveal the direction the economy is heading in; for example, the unemployment rate and the inflation rate. with unemployment of about 4%.
Credit risks include the City of San Antonio's heavy reliance on transfers from CPS and the city's aversion to lowering them in the future. While the South Texas Nuclear Project (STP STP or standard temperature and pressure, standard conditions for measurement of the properties of matter. The standard temperature is the freezing point of pure water, 0°C; or 273.15°K;. ) is operating very well, nuclear exposure remains a concern. STP supplies approximately 31% of CPS' energy requirements which is down from 33% in 1999, in part due to the June 2, 2000 commercial operation of the new 512 mw Arthur von Rosenberg combined cycle power plant.
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