Printer Friendly

D&P RATES VIRGINIA ELECTRIC AND POWER COMPANY $760 MILLION FIRST & REFUNDING MORTGAGE BONDS (SHELF), $100 MILLION PREFERRED STOCK (SHELF)

 CHICAGO, Oct. 1 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Virginia Electric and Power Company's shelf registration for $760 million of first and refunding mortgage bonds. Combined with a previous filing, $800 million of first and refunding mortgage bonds are available for sale. Separately, a rating of `A' (Single-A) has been assigned to the company's shelf registration for one million shares of preferred stock, with a liquidation value of $100 a share. Proceeds will be used to redeem outstanding securities and for capital expenditures.
 Virginia Electric and Power Company has strong underlying fundamentals. The service area is relatively healthy, and regulation generally has been supportive. Plant operations have been efficient and cost controls have been effective at holding rates down. Construction requirements are manageable. Continued financial stability is expected as a result of increased equity, rate increases, sales growth, and lower borrowing costs.
 The company's large purchased power obligations weaken debt protection measures. The ability to fully collect growing, deferred purchased power capacity costs is a concern. This issue will be addressed in the Virginia Electric and Power Company's pending rate case, with a final decision expected soon.
 Virginia Electric and Power Company, a wholly owned subsidiary of Dominion Resources, Inc., is Virginia's largest electric utility. It serves 1.7 million customers in a 30,000 square mile area in Virginia and northeastern North Carolina.
 -0- 10/1/93
 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/


CO: Virginia Electric and Power Company ST: Virginia IN: UTI SU: RTG

MP -- NY067 -- 0892 10/01/93 14:29 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 1, 1993
Words:268
Previous Article:MONEY SMALL INVESTOR INDEX: SMALL INVESTORS EARN 2.6% IN THIRD QUARTER
Next Article:PHH CORP. $80 MILLION FLOATING-RATE MEDIUM-TERM NOTES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters