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DETROIT EDISON $50 MIL MULTI-MODE SEC NOTES 'A-/F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 14 /PRNewswire/ -- Detroit Edison Co.'s (NYSE: DTE) ("DTE") $50 million multi-mode, remarketed secured notes 1993 series A due 2028 are rated 'A-/F-1' by Fitch. The notes will be taken down under a new SEC Rule 415 shelf registration. The credit trend is improving.
 The notes will be secured by general and refunding mortgage bonds of the company. The interest rate will initially be set at the 30-day rate for commercial paper. Subsequently, each note will bear interest on either a daily, weekly, 30-, 60-, 90-, 180-day or long-term interest rate mode, as chosen by the company, and will be remarketed at the end of each respective interest rate period. DTE may, at its option, enter into a standby note purchase agreement to provide liquidity in the unlikely event of a failed remarketing. However, the company will ultimately be obligated to purchase any unremarketed notes if the liquidity provider fails to purchase the notes for any reason.
 The rating reflects DTE's improved financial and operating performance in recent years, the aggressive implementation of ongoing cost reduction programs, an improving economy in the company's service territory, the continued superior operating performance of the Fermi 2 nuclear power plant, and internal cash generation well in excess of capital requirements over the foreseeable future. The company's financial protection measures have improved steadily since a December 1988 rate settlement order permitting a seven-year phase-in for recovery of approved Fermi 2 nuclear power plant costs. The rate order also suspended the power supply cost recovery clause, established a five-year moratorium on base rate changes, and provided for an expense stabilization procedure allowing adjustments for inflation.
 Although competitive rate concerns are of increasing importance, along with an above-average reliance on the automobile and steel industries, the company has taken action by lowering base rates by $174 million in January 1993 and reducing industrial interruptible rates for up to 400 megawatts of power; there is potential for a further base rate reduction in 1994.
 -0- 6/14/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/
 (DTE)


CO: Detroit Edison Co. ST: Michigan IN: UTI SU: RTG

MP -- NY084 -- 1713 06/14/93 14:25 EDT
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Publication:PR Newswire
Date:Jun 14, 1993
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