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MOODY'S ASSIGNS Baa TO SIKESTON, MO.'S ELECTRIC SYSTEM REVENUE REFUNDING BONDS, 1992 SERIES

 MOODY'S ASSIGNS Baa TO SIKESTON, MO.'S ELECTRIC SYSTEM REVENUE
 REFUNDING BONDS, 1992 SERIES
 NEW YORK, May 6 /PRNewswire/ -- Effective yesterday, Moody's Investors Service assigned a Baa rating to the city of Sikeston, Mo.'s $222,345,000 Electric System Revenue Refunding Bonds, 1992 Series, expected through negotiation the week of May 18.
 In assigning the rating, Moody's stated that "The electric system has made great strides in recent years in achieving stability in overall financial operations. Amendments to a previous onerous coal purchase contract, the settlement of lawsuits and restructuring of power purchase contracts with several municipal power purchasers, and increased marketability of surplus power now that rates have stabilized and are competitive, have all contributed to the improved financial position. Moreover, the system's coal-fired plant has a good operating history, including compliance with strong emission standards. The Baa rating assigned to the current offering reflects these positive features as well as the full funding of the debt service reserve created by the sale.
 During the early and mid-1980s a severe miscalculation of projected demand for power and expensive fuel contracts resulted in poor system financial operations culminating in the rapid depletion of the debt service reserve. Despite recent positive developments, vulnerabilities persist such as the dependence on a single plant, a hesitancy to gradually raise rates to support debt service costs as well as an absence of any step-up provisions. Sikeston's outstanding electric revenue debt -- Series 1978, 1979 and 1981 -- which will be refunded by this issue, remains under review pending closing of this offering."
 -0- 5/6/92
 /CONTACT: David Ambler, 212-553-4388, Ann Lowenthal, 212-553-0915, or Steven Bocamazo, 212-553-7168, all of Moody's/ CO: City of Sikeston, Mo. ST: Missouri IN: SU: RTG


TS-PS -- NY023 -- 7000 05/06/92 10:40 EDT
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Publication:PR Newswire
Date:May 6, 1992
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