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OLD DOMINION ELECTRIC COOPERATIVE $450 MILLION BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

OLD DOMINION ELECTRIC COOPERATIVE $450 MILLION BONDS RATED 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, April 28 /PRNewswire/ -- Old Dominion Electric Cooperative's $450 million first mortgage bonds, 1992 Series A, due 2002 and 2022 are rated 'A+' by Fitch. The credit trend is stable. The bonds are scheduled to sell at the end of May through negotiation by Smith Barney, Harris Upham & Co.
 Despite being a relatively young generation and transmission (G&T) cooperative, Old Dominion compares favorably with other industry credits. Its service area is diverse, covering portions of four states, and it is well situated to benefit from continued growth in the increasingly suburban Washington, D.C./Richmond, Va. corridor. The existing power supply is balanced between an 11.6 percent ownership interest in the well performing North Anna nuclear plant and purchased power contracts with five electric utilities. These arrangements provide Old Dominion with good operating flexibility and a guaranteed backup power supply in event of an outage at North Anna. A 50 percent share of the new coal-fired Clover project should provide additional diversity. Old Dominion's financial targets include an equity ratio increasing to over 20 percent by the end of the decade and interest coverage of 1.20 times.
 Completion of the Clover project, scheduled for full commercial operation by April 1996, adds an element of risk but the use of a fixed- price, "turn-key" contract helps to mitigate this concern. Rate regulation of cooperative members by their respective state commissions is viewed as another possible risk. Finally, without Rural Electrification Administration funding, Old Dominion will be reliant on the public debt markets, which will necessitate maintaining much stronger financial ratios than were historically required.
 -0- 4/28/92
 /CONTACT: Alan Spen, 212-908-0594, or Susan M. Courtney, 212-908-0503, both of Fitch/ CO: Old Dominion Electric Cooperative ST: IN: UTI SU: RTG


AH -- NY125 -- 3988 04/28/92 16:17 EDT
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Publication:PR Newswire
Date:Apr 28, 1992
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