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SACRAMENTO MUNICIPAL UTILITY DISTRICT (CALIF.) $144 MILLION BONDS RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 17 /PRNewswire/ -- Sacramento Municipal Utility District's (SMUD) $143.6 million electric revenue refunding bonds, 1993 series G are rated "A-" by Fitch, it was announced today. The district's $1.99 billion outstanding "A-" parity electric revenue bonds are affirmed. The credit trend is stable. The bonds are scheduled to sell through negotiation the week of Sept. 20 by a Goldman, Sachs & Co. syndicate.
 SMUD benefits from a sound financial position, stable economic base, and competitive rates. Also viewed favorably is SMUD's new resource plan, which is intended to diversify generating resources and reduce dependence on higher cost power purchases from investor-owned utilities. Incorporated in the plan are demand-side management programs, several smaller cogeneration projects, and Pacific Northwest power purchases, all of which should provide better balance to SMUD's power supply program. The district will also benefit from improved hydro conditions in 1993. Electric rates are competitive for the region, with moderate increases projected. Rate increases will be implemented as required to maintain a targeted fixed-charge ratio of 1.50 times.
 While SMUD's board has approved the new power resource program, credit risks center primarily on the need for final approvals, funding, and construction of the new cogeneration projects. Concerns about active community and board involvement in SMUD's operations have been mitigated in recent years. Although the recession continues to adversely affect California, Sacramento's economy has remained generally stable.
 -0- 9/17/93
 /CONTACT: Susan M. Courtney, 212-908-0503, or Alan Spen, 212-908-0594, both of Fitch/


CO: ST: California IN: UTI SU: RTG

TS -- NY013 -- 3023 09/17/93 10:57 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
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