DUFF & PHELPS: GEORGIA POWER COMPANY$300 MILLION FIRST MORTGAGE BONDS RATED 'A+'
CHICAGO, April 14 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Georgia Power Company's offering of $300 million of first mortgage bonds. Georgia Power is a well managed company and its management has demonstrated that its planning and strategies are effective. A continuation of solid improvement is anticipated as cost control measures and a scaling-back of construction expenditures contribute to improved cash flows and financial protection measures. Importantly, earnings retention will be permitted by parent Southern Company, which will help to reduce debt and gradually strengthen the capital structure. An expected increase in coverages will be somewhat offset by temporary purchased capacity buy-backs which terminate in 1997. Earnings quality is good; Georgia Power's cost structure appears advantageous in the competitive environment. Regulation in Georgia has been more reasonable in recent times and it appears to be supportive of having a strong utility in the state. Legislation has been approved for plant certification which adds to credit quality. The economy is stable. Growth in the Atlanta area will continue as the city prepares to host the 1996 Summer Olympics. Georgia Power Company, a subsidiary of Southern Company, provides electric service to most of Georgia. The support of the Southern Company system is a positive. -0- 4/14/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/ (SO)
CO: Georgia Power Company ST: Georgia IN: UTI SU: RTG
WB -- NY095 -- 5864 04/14/93 15:59 EDT
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|Date:||Apr 14, 1993|
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