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SAM RAYBURN MUNICIPAL POWER AGENCY (TX) BONDS RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 12 /PRNewswire/ -- Sam Rayburn Municipal Power Agency's (TX) $87.5 million power supply system revenue refunding bonds, series 1993B are rated 'BBB-' by Fitch. The rating on $153.4 million power supply system revenue refunding bonds, series 1993A is affirmed at 'BBB-'. The credit trend is stable. The bonds are scheduled to sell on a negotiated basis the week of Feb. 22 by a Paine Webber Inc. syndicate.
 Due to slower than expected growth in energy demand, the agency finds itself with a large amount of excess generating capacity. The situation will worsen as a sell-back arrangement with Gulf States Utilities Co. terminates in 1996. While marketing this excess capacity and energy would improve the agency's position, it has been unsuccessful to date in securing meaningful off-system power sales contracts. Sam Rayburn's adoption in early 1992 of a more active approach in marketing its excess power is noted as a positive. While preliminary discussions with certain utilities are occurring, it is too soon to assess the results of these efforts.
 The agency's financial performance has been satisfactory and will be helped over the near term by the savings provided through its refunding program. However, electric rates to the participants are high, and annual increases are projected throughout the decade unless new utility customers are added.
 The member systems' service areas are below average economically and have experienced little or no historical growth in energy sales, with only nominal growth forecast through 2007. Despite this, the relationship between the agency and its members has been good, as demonstrated by the participants' history of increasing electric rates when necessary.
 -0- 2/12/93
 /CONTACT: Susan M. Courtney, 212-908-0503, or Alan Spen, 212-908-0594, both of Fitch/


CO: Sam Rayburn Municipal Power Agency ST: Texas IN: UTI SU: RTG

LR -- NY022 -- 6123 02/12/93 11:35 EST
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Date:Feb 12, 1993
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