Printer Friendly

MMWEC POWER SUPPLY SYSTEM REVENUE BONDS RATED 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --

 MMWEC POWER SUPPLY SYSTEM REVENUE BONDS RATED 'BBB+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Jan. 23 /PRNewswire/ -- Massachusetts Municipal Wholesale Electric Co.'s (MMWEC) Power Supply System Revenue Bonds, 1992 Series A are rated "BBB+" by Fitch. The bonds will be sold through negotiation by a Goldman, Sachs & Co. syndicate. This issuance is the first series in MMWEC's current refunding plan, estimated at approximately $750 million. MMWEC's $1.4 billion of outstanding power supply system revenue bonds are also rated "BBB+". The credit trend is stable. This is the first time Fitch has been requested to rate MMWEC's debt.
 With the September 1991 validation of the Project No. 6 power sales agreements by the Massachusetts Supreme Judicial Court, MMWEC is poised to refund a significant portion of its high coupon bonds. The refundings will provide substantial rate savings to the participants and eliminate much of the rate disparity with other regional utilities. Credit characteristics of the participants' electric systems are fundamentally sound and a diversity of generating resources and a balanced fuel supply are other positive factors. Particularly strong bondholder protection is provided by the ability to use surplus cash flow from designated accounts in all of MMWEC's projects, in addition to the 25 percent step-up permitted within each project. Sensitivity analyses show surplus cash to be sufficient to cover the current shortfall resulting from defaults of certain Project No. 6 out-of-state participants, and further defaults, if they were ever to occur.
 Credit risks focus on the general weakness of the New England economy and the expectation that economic growth could remain sluggish for a prolonged period. While MMWEC enjoys a balanced power supply program, a high concentration of financial assets in a single plant, Seabrook, is also of concern. Attempts by certain Massachusetts participants to void their contractual agreements with MMWEC have not proven successful, but related litigation remains ongoing.
 -0- 1/23/92
 /CONTACT: Alan Spen, 212-908-0594, or Susan Courtney, 212-908-0503, both of Fitch/ CO: Massachusetts Municipal Wholesale Electric Co. ST: Massachusetts IN: UTI SU: RTG


TS -- NY045 -- 2750 01/23/92 11:29 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 23, 1992
Words:348
Previous Article:BRINKER INTERNATIONAL REPORTS RECORD REVENUES & A 44.2 PERCENT INCREASE IN NET INCOME FOR THE SECOND FISCAL QUARTER
Next Article:SONAT REPORTS ANNUAL RESULTS, DECLARES DIVIDEND, ANNOUNCES ACCOUNTING CHANGE
Topics:


Related Articles
MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY (MMWEC) BOND RATING SUSPENSION LIFTED; CREDIT POSITION NOW IMPROVED
LILCO $131 MILLION GENERAL & REFUNDING MORTGAGE BONDS RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
LILCO $80 MILLION GENERAL & REFUNDING BONDS RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
LINCOLN (NE) ELECTRIC SYSTEM REVENUE BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --
WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S NUMBERS 1, 2, 3 SERIES 1992A BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC CO. UPGRADED TO 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
Piedmont Power $167.2M Electric Revs. Rated 'BBB' by Fitch -- Fitch Financial Wire --
Coconino County AZ $20M Revenue Bonds Rated 'BBB' By Fitch -- Fitch Financial Wire --
NCEMPA $447M Power Revs Rated 'BBB+' By Fitch -- Fitch Financial Wire --
Nevada Power Co. $121 Million Preferreds Rated 'BBB' By Fitch - Fitch Financial Wire -

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters