DUFF & PHELPS: CONSOLIDATED EDISON COMPANY OF NEW YORK $380 MILLION DEBENTURES RATED 'A+'
CHICAGO, June 8 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Consolidated Edison Company of New York's (Con Ed) offering of $380 million of debentures. The 7 1/2 percent bonds were priced at 99.045 to yield 7.581 percent and mature June 15, 2023. Proceeds will be used primarily for refunding. Con Ed's strong financial profile maintained over many years is a key factor in our credit rating. Capital requirements are manageable with minimal exposure from clean air legislation and no planned new base load capacity additions. Future capacity requirements will be met primarily by purchased capacity from non-utility generators, as required by regulators. Purchased capacity contracts in place are expected to cover customer demand growth and plant replacement needs for about the next 20 years. These rapidly growing obligations add financial burden; however, a three-year electric rate plan somewhat mitigates this risk by providing a higher equity ratio. The plan also provides recovery of demand-side management costs and includes a comprehensive electric revenue adjustment clause which neutralizes the earnings impact of sales fluctuations. The company has been taking vigorous action to reduce purchased capacity expenses to moderate increases in customer rates. Consolidated Edison Company of New York provides electric service to all of New York City (except for part of Queens) and most of Westchester County. The company also supplies gas to Manhattan, the Bronx, and parts of Queens and Westchester. Steam service is provided to downtown Manhattan. -0- 6/8/93 /CONTACT: John C. Dell, of Duff & Phelps Credit Rating Co., 312-368-3161/ (ED)
CO: Consolidated Edison Company of New York ST: New York IN: UTI SU: RTG
MP -- NY039 -- 6500 06/08/93 11:19 EDT
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|Date:||Jun 8, 1993|
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