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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, May 28 /PRNewswire/ -- Massachusetts Municipal Wholesale Electric Co.'s (MMWEC) $63.6 million power supply system revenue bonds 1992 Series C are rated "BBB+" by Fitch. The bonds will be sold through negotiation the week of June 1 by a Goldman, Sachs & Co. syndicate. The rating on $1.4 billion of outstanding power supply system revenue bonds is affirmed at "BBB+". The credit trend is stable.
 The Massachusetts Supreme Judicial Court's validation of the Project No. 6 power sales agreements (PSAs) has provided MMWEC with the opportunity 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. Other positive factors include a diversity of generating resources and a balanced fuel supply.
 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 is sufficient to cover the current shortfall resulting from defaults of certain Project No. 6 out-of-state participants and other defaults, should they occur.
 Credit risks focus on the general weakness of New England's economy and the expectation that sluggish economic growth could be prolonged. While MMWEC enjoys a balanced power supply program, a high concentration of financial assets in a single plant, Seabrook Nuclear Generating Station, is another concern. Attempts by certain Massachusetts participants to void their contractual agreements with MMWEC have not proven successful, but related litigation remains ongoing.
 -0- 5/28/92
 /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


GK -- NY055 -- 4750 05/28/92 12:25 EDT
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Publication:PR Newswire
Date:May 28, 1992
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