Printer Friendly

PUGET SOUND P&L $450 MILLION NOTE PROGRAM RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --

 PUGET SOUND P&L $450 MILLION NOTE PROGRAM RATED 'A-' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 28 /PRNewswire/ -- Puget Sound Power & Light Co.'s $450 million secured medium-term note program is rated 'A-' by Fitch. Ratings are affirmed on its outstanding issues: $295 million 'A-' first mortgage bonds, $450 million 'A-' secured medium-term notes, $260 million 'BBB+' preferred stock, and 'F-2' commercial paper. The $154 million guaranteed collateralized bonds of Puget Energy Inc., a wholly- owned subsidiary, are affirmed at 'A-'. The credit trend is stable.
 The ratings reflect Puget's healthy service territory, above average sales and customer growth, hydro-based generating mix, and a rate plan that should result in greater earnings stability.
 The company plans to meet its growing load requirements without constructing any new base load generating capacity. Instead, Puget plans to continue its traditional reliance on purchases of surplus hydro power, largely from neighboring public utility districts, expansion of its transmission capability to access additional resources in California, the Southwest, and Canada, plus non-utility generation, and energy conservation.
 The rate adjustment mechanism, implemented in October 1991, is compatible with this purchase/conserve strategy. The annual rate adjustment, designed to remove financial disincentives for energy conservation, permits the recovery of all resource costs including fuel and purchase power expenses, similar to a fuel adjustment clause, as well as recovery of investments in conservation.
 Prospectively, Fitch expects credit quality to be stable. However, expanding the transmission network will increase expenditures to about $1.5 billion over the next five years and will require regulatory support, probably in 1993. Internal cash generation is expected to fund about 60 percent of expenditures.
 -0- 10/28/92 R
 /CONTACT: Robert Hornick of Fitch, 212-908-0564/
 (PSD) CO: Puget Sound Power & Light Co. ST: Washington IN: UTI SU: RTG


KD -- NY041 -- 5933 10/28/92 11:21 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:Oct 28, 1992
Words:306
Previous Article:AMBASE REPORTS THIRD QUARTER EARNINGS
Next Article:COMPUTER NETWORK TECHNOLOGY DEMONSTRATES PARTNERSHIPS, NEW PRODUCTS AT INTEROP '92
Topics:


Related Articles
PUGET SOUND P&L $100 MILLION MEDIUM TERM NOTES RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
PUGET SOUND P&L $200 MILLION PREFERRED SHELF RATED 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --
PUGET SOUND P&L $75 MIL. 7-7/8 PERCENT PREFERRED RATED 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --
NEVADA POWER FIRST MORTGAGE BONDS, PREFERRED LOWERED TO 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
HOUSEHOLD INTERNATIONAL $50 MILLION 8.25 PERCENT PREFERRED RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
PUGET SOUND P&L $450 MILLION NOTE PROGRAM RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
PUGET SOUND P&L ADJUSTABLE-RATE PREFERRED STOCK RATED 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --
DETROIT EDISON $2 BILLION 'A-' SENIOR DEBT AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --
PUGET SOUND P&L $874 MIL 'A-' 1ST MORTGAGE BONDS AFFIRMED BY FITCH
MONTANA POWER RATINGS AFFIRMED, CP RATED 'F-2' BY FITCH -- FITCH FINANCIAL WIRE --

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