DUFF & PHELPS: ARKANSAS POWER & LIGHT COMPANY $155 MILLION FIRST MORTGAGE BONDS RATED 'BBB'
CHICAGO, Oct. 7 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB' (Triple-B) to Arkansas Power & Light Company's $155 million offering of first mortgage bonds, due Oct. 1, 2003. Proceeds will be used to refinance higher cost debt and for general corporate purposes. Arkansas Power & Light's debt protection measures are improving as its Grand Gulf nuclear purchased power commitment is phased into rates. Cash flow has been enhanced since 1991 by the recovery of previously deferred Grand Gulf purchased power costs. However, interest coverages and the debt ratio are adversely impacted by significant adjustments for the financial impact of the Grand Gulf purchased capacity. Arkansas Power & Light's rate requirements are minimal for the foreseeable future. Construction expenditures, primarily for production and distribution improvements, should be manageable and internally funded. Leverage should continue to gradually decline as debt is retired largely with cash from the rate settlement phase-in. Under the company's agreement with affiliate System Energy Resources, Arkansas Power & Light is entitled to a 36 percent share of energy and capacity from the 1,028 mw Grand Gulf facility. Performance at Grand Gulf has been good with an 81 percent capacity factor in 1992. Arkansas Power & Light, a subsidiary of the Entergy Corporation, serves approximately 575,000 electric customers in 63 counties of Arkansas. -0- 10/6/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: Arkansas Power & Light Company ST: Arkansas IN: UTI SU: RTG
MP -- NY069 -- 9435 10/06/93 15:30 EDT
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|Date:||Oct 6, 1993|
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