DUFF & PHELPS: ANAHEIM PUBLIC FINANCING AUTHORITY $62.5 MILLION REVENUE BONDS, SECOND SERIES 1993 RATED 'AA'
CHICAGO, July 28 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to Anaheim Public Financing Authority's (PFA) proposed offering of $62.5 million of second series 1993 revenue bonds, (City of Anaheim Electric Utility San Juan Unit 4 Project). The PFA bonds are subordinate to Anaheim's senior debt, but strongly benefit from high coverage levels and favorable security provisions. Proceeds will be used primarily to pay costs of the acquisition of the San Juan Unit 4 Project. Anaheim's electric system has a well diversified power supply and fuel mix. Southern California Edison has contracted to supply the city's electric needs until the year 2028 to the extent the city's electric resources are not adequate. The electric system has reduced its reliance upon Southern California Edison for base load power through entering into long-term, favorably priced purchases with other entities and developing its own resources. The purchase of a portion of San Juan Generating Station Unit 4 will assist in this endeavor. Anaheim's primary power source is its 13.225 percent (211.6 mw) purchased capacity entitlement in the coal-fired Intermountain Power Project. Anaheim's financial operations, beyond that of the electric and water systems, appear satisfactory. The utility systems' finances are managed separately from general operations of the city; however, all accounts are consolidated for investment purposes. Despite the importance of economically sensitive revenues, financial operations appear well maintained and have demonstrated flexibility sufficient to absorb unbudgeted shortfalls. Satisfactory financial performance of the Electric and Water Funds is contingent upon successful implementation of rate increases. Although Anaheim has an above average dependence on aerospace and defense activity, it possesses an unusually strong tourist, recreation and convention-based trade and service sector. Projects such as the large $3.0 billion Disney expansion project should stimulate the city's economy and mitigate negative effects from the weak California economy. Anaheim's electric system serves the city of Anaheim, with a population of approximately 285,000. -0- 7/28/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: Anaheim Public Financing Authority ST: California IN: UTI SU: RTG
MP -- NY072 -- 6740 07/28/93 12:51 EDT
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|Date:||Jul 28, 1993|
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