CLEVELAND ELECTRIC ILLUMINATING COMPANY $150 MILLION FIRST MORTGAGE BONDS 'BBB-'
CHICAGO, Feb. 10 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of BBB-' (Triple-B-Minus) to Cleveland Electric Illuminating Company's shelf registration for $150 million of first mortgage bonds. Proceeds will be used to redeem maturing securities and for other corporate purposes. The rate stabilization plan implemented in October 1992 established rate increase limitations through 1998. As a result, future improvement in credit fundamentals will be a function of sales growth and cost control efforts. Management's ability to control costs and remain competitive will be a challenge with the continued interest among some customers in municipalization. Expenditures for construction and acid rain provisions are expected to be manageable. Leverage is relatively high when adjusted for sale-leaseback debt. Cleveland Electric, a subsidiary of Centerior Energy Corporation, provides electric service to 746,000 customers in northeastern Ohio. Although Cleveland is the principal city in the service area, the company derives approximately three-fourths of its revenues from customers outside the city. -0- 2/10/93 /CONTACT: John C. Dell of Duff & Phelps, 312-368-3161/ (CX)
CO: Cleveland Electric Illuminating Company ST: Ohio IN: UTI SU: RTG
LR -- NY048 -- 5143 02/10/93 12:15 EST
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|Date:||Feb 10, 1993|
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