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LILCO SHELF RATED 'BBB' G&R BONDS, 'BBB-' DEBENTURES, PREFERRED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, April 20 /PRNewswire/ -- Long Island Lighting Co.'s (LILCO) $570 million shelf registration is rated "BBB" for general and refunding bonds and "BBB-" for debentures and preferred stock. Together with a previous shelf registration, the company may sell approximately $791 million of securities, including common stock. 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.
 Proceeds will be used to refund high-cost debt or preferred stock, to satisfy maturing debt obligations, and to finance working capital requirements. From 1993-1995, the company estimates that about $1.4 billion of external financing will be required, principally to refund maturing debt and to meet operating and capital requirements. Additionally, LILCO intends to access the capital markets to refund high-cost debt and preferred stock. During the first quarter of 1993, the company issued $657 million of debentures and about $61 million of preferred stock to retire debt or preferred stock through optional redemption or at maturity, to purchase high-cost debt or preferred stock, and to pay related redemption premiums. LILCO expects that existing generation coupled with conservation and load management programs and purchase power will be sufficient to meet energy demand beyond the end of the decade.
 In November 1992, the company received an electric rate increase of $88.8 million or 4.1 percent which became effective Dec. 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. LILCO also received a gas rate increase of $35.7 million effective Dec. 1, 1992.
 -0- 4/20/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/
 (LIL)


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

GK -- NY047 -- 7926 04/20/93 10:25 EDT
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Publication:PR Newswire
Date:Apr 20, 1993
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