Printer Friendly

PUBLIC SERVICE COMPANY OF COLORADO $134.5 MILLION FIRST COLLATERAL TRUST BONDS RATED 'BBB+' BY DUFF & PHELPS

 CHICAGO, Nov. 16 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "BBB+" (Triple-B-Plus) to Public Service Company of Colorado's proposed offering of $134.5 million of first collateral trust bonds, Series No. 1. Proceeds will be used to refund outstanding first mortgage bonds.
 This will be the first offering of bonds under the company's new mortgage bond indenture. A like amount of first mortgage bonds (old indenture) will be pledged as collateral for the new bonds and will remain pledged until all outstanding first mortgage bonds are retired. Provisions under the new indenture will ultimately provide the company more flexibility than the "old" first mortgage indenture. Provisions of the first mortgage indenture remain in effect while first mortgage bonds are outstanding.
 Additional equity issuances and regulatory support will be necessary for improvement in Public Service Company of Colorado's credit fundamentals. The company is highly dependent on purchased power, lowering reported coverages. Earnings, coverages and cash flows will be pressured as a result of the Public Utilities Commission of Colorado's (CPUC) recent rate order. Effective Dec. 1, the company's authorized return on equity (ROE) will be lowered to 11 percent, and rates will be reduced by about $5 million. Positively, management is increasing efforts to refocus on its core utility business and divest of poorly performing non-utility businesses.
 The rating recognizes the risks inherent with the decommissioning of the Fort St. Vrain nuclear plant. The CPUC previously approved recovery of $124 million over 12 years for decommissioning expenses. The decommissioning process is on schedule and within budget.
 Public Service Company of Colorado provides electric and gas service in an area with an estimated population of 2.7 million.
 -0- 11/16/93
 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
 (PSR)


CO: Public Service Company of Colorado ST: Colorado IN: UTI SU: RTG

TW -- NY099 -- 4236 11/16/93 17:07 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 16, 1993
Words:317
Previous Article:NEW YORK TELEPHONE $200 MILLION REFUNDING MORTGAGE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:T.H.E. FINANCIAL GROUP, LTD. OFFERS
Topics:

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