DUFF & PHELPS: CONSOLIDATED EDISON COMPANY OF NEW YORK $500M UNSECURED DEBT SECURITIES (SHELF) RATED 'A+'; $150M DEBENTURES RATED 'A+'
CHICAGO, April 7 /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) shelf registration for $500 million of unsecured debt securities. A rating of "A+" (Single-A-Plus) also has been assigned to Con Ed's proposed offering for $150 million of debentures. A balance of $375 will remain available for sale after the debenture offering. Proceeds will be used to redeem outstanding first and refunding mortgage bonds. Con Ed's strong financial profile maintained over many years is a key factor in its credit quality. Capital requirements are manageable; the company's exposure from acid rain legislation is minimal and no new base load capacity additions are planned. 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 the increase 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- 4/7/93 /CONTACT: William A. Abrams of Duff & Phelps, 312-368-3112/ (ED)
CO: Consolidated Edison Company of New York ST: New York IN: UTI SU: RTG
GK -- NY062 -- 3890 04/07/93 16:06 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Apr 7, 1993|
|Previous Article:||ATLAS CONSOLIDATED MINING & DEVELOPMENT CORP. REPORTS ANNUAL RESULTS|
|Next Article:||HCC INSURANCE HOLDINGS, INC. ANNOUNCES CAPITAL CONTRIBUTION TO HOUSTON CASUALTY COMPANY|