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CONSUMERS POWER $600 MIL 1ST MTGE BONDS 'BBB+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 22 /PRNewswire/ -- Consumers Power Co.'s (CPC) $600 million first mortgage bonds are rated "BBB+" by Fitch. The bonds are a takedown from a previously rated shelf registration. The new issue includes $300 million 6 3/8 percent five-year noncallable bonds due 2003 and $300 million 7 3/8 percent 10-year noncallable bonds due 2023. The credit trend is improving.
 The rating reflects the combination of improving regulatory relations, a growing service territory, competitive rates, continued deleveraging, equity infusions by parent CMS Energy, and reasonable rate relief. These factors provide a realistic opportunity to reduce currently high debt leverage to about 56 percent of capitalization from 64 percent over the next several years and increase pretax interest coverage to approximately 3.0 times (x) from 1.81x in 1992. Additionally, Consumers effected a quasi-reorganization of its equity that permitted resumption of dividends to CMS Energy.
 -0- 9/22/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/
 (CMS)


CO: Consumers Power Co.; CMS Energy ST: Michigan IN: UTI SU: RTG

LG -- NY060 -- 4753 09/22/93 13:51 EDT
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Publication:PR Newswire
Date:Sep 22, 1993
Words:180
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