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CENTRAL IOWA POWER CO-OP $2.7 MILLION GTD PCR BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 13 /PRNewswire/ -- Louisa County, Iowa's $2.7 million National Rural Utilities Cooperative Finance Corp. (CFC) guaranteed pollution control revenue refunding bonds (Central Iowa Power Cooperative Project) pooled series 1993L are rated "A+" by Fitch. The credit trend is stable. The bonds are scheduled to sell the week of Oct. 18 by a Lehman Brothers syndicate.
 The rating reflects the unconditional guarantee provided by CFC to make full and timely payments of principal and interest on the bonds. The bonds will be secured by, and subject to, the pool indenture. CFC is a not-for-profit cooperative association responsible for providing its rural electric cooperative members with supplemental financing to the Rural Electric Administration's (REA) loan program. In addition to direct loans, CFC provides guarantees for tax-exempt financing of pollution control facilities and other properties constructed or acquired by its members.
 CFC's sound financial performance continues, despite recent financial difficulties of some of its larger borrowers. For fiscal year ended May 31, 1993, CFC reported a times interest earned ratio (TIER) of 1.16 times (x), above targeted levels. Added protection is provided by a $172.6 million allowance for loan and guarantee losses, which as of May 31, 1993, represented 2.13 percent of total loans and guarantees outstanding. Other strengths include a large and diverse membership and a first lien on members' assets and future revenues. Credit concerns include continued exposure to Deseret Generation & Transmission Cooperative, one of CFC's larger borrowers, which is operating under a restructuring agreement with its major creditors, and uncertainty related to the changing rural electric cooperative industry.
 Central Iowa Power Cooeprative (CIPCO) is a generation and transmission (G&T) co-op providing wholesale electric service to its 16 member systems. CIPCO's resource mix includes ownership interest in nuclear, coal, and oil facilities. The G&T also owns transmission lines and is involved in various interconnection and power pool arrangements. Historical financials have been stable with a 1.17x TIER, 1.35x debt service coverage, and a 15 percent equity ratio in 1992.
 -0- 10/13/93
 /CONTACT: Susan M. Courtney, 212-908-0503 or Alan Spen, 212-908-0594, both of Fitch/


CO: Central Iowa Power Cooperative Project ST: Iowa IN: UTI SU: RTG

LG -- NY081 -- 1778 10/13/93 14:46 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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