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LILCO $36 MILLION DEBENTURES RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 12 /PRNewswire/ -- Long Island Lighting Co. (LILCO)'s $36 million issue of 7.3 percent noncallable debentures due Jan. 15, 2000, is rated "BBB-" by Fitch. The issue is a takedown from a shelf registration which was rated "BBB" for general and refunding bonds and "BBB-" for debentures. The credit trend is improving.
 The rating reflects the assurance of electric rate increases, with incentives, through December 1993, continued aggressive refinancing of high-cost debt and preferred stock, and a significant improvement in earnings quality, cash flow, and internal cash generation over the next several years.
 During November 1992, the company received an electric rate increase of $88.8 million or 4.1 percent which became effective December 1. The increase represents the second year of a three-year electric rate plan adopted by the Public Service Commission in November 1991 which stipulated increases of approximately 4 percent to become effective Dec. 1, 1991, 1992, and 1993. The latest increase represents the fifth increase of two consecutive three-year rate plans. In 1989, the Public Service Commission approved a rate moderation agreement providing targets for electric rate increases in each year through 1999.
 LILCO also received a gas rate increase of $35.7 million effective Dec. 1, 1992. In arriving at this amount, the Public Service Commission deferred $10.9 million of LILCO's revenue requirements for future recovery in 1994-1995. The company's request for $50.3 million was based on returns of 10.49 percent on rate base and 12 percent on common equity. The final order allowed returns of 9.97 percent on rate base and 11 percent on common equity.
 -0- 1/12/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/
 (LIL)


CO: Long Island Lighting Co. ST: New York IN: UTI SU: RTG

TS -- NY093 -- 4047 01/12/93 12:49 EST
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Publication:PR Newswire
Date:Jan 12, 1993
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