DUFF & PHELPS: DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES $80.230M WATER WORKS REFUNDING REVENUE BONDS, ISSUE OF 1993 RATED 'AA'
CHICAGO, March 26 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to the Department of Water and Power of The City of Los Angeles' proposed offering of $80.230 million of water works refunding revenue bonds, issue of 1993. Proceeds will be used to redeem outstanding water works bonds. The bonds are payable solely from a separate water revenue fund and not out of any other fund or monies of the Department. The Department is under the direction of a five-member Board which is obligated by charter to set rates (subject to the approval of the City Council) at levels sufficient to meet all expenses, including debt service requirements. The Water System obtains its supplies from four principle sources: the underground basin of the Los Angeles River and local wells; the High Sierra via the Los Angeles Owens River Aqueducts; the Colorado River Aqueduct; and the California Aqueduct. The diversity inherent in supplies is a fundamental strength of the System. In recent years, Los Angeles had to significantly increase its purchases of Colorado River Aqueduct and California Aqueduct water due to the prolonged drought in California. Mountain snowpack is reported at or near record levels to restore water supplies and cushion future shortages. The water system has a very conservative capital structure and strong debt service coverages. The Department estimates it will spend approximately $658 million in the 1993-97 period for water system capital construction. Internal cash generation should provide about one-half of the necessary funds for capital expenditures. Los Angeles Department of Water and Power, the nation's largest municipal utility, provides electric and water service to a population of nearly 3.5 million people within a 465 square mile area, including The City of Los Angeles. -0- 3/26/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/
CO: ST: California IN: SU: RTG
SH -- NY034 -- 0096 03/26/93 13:50 EST
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|Date:||Mar 26, 1993|
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