DUFF & PHELPS: LOUISIANA POWER AND LIGHT $210 MILLION SHELF REGISTRATION FIRST MORTGAGE BONDS RATED 'BBB+' PREFERRED STOCK RATED 'BBB-'
CHICAGO, Nov. 10 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to Louisiana Power and Light Company's $210 million combination shelf registration. The rating of `BBB+' (Triple-B-Plus) applies to the first mortgage bond portion and the rating of `BBB-' (Triple-B-Minus) to the preferred stock. With a previous filing, $369 million of first mortgage bonds and preferred stock are available for sale. Proceeds will be used for general corporate purposes which may include the redemption or acquisition of outstanding securities. Louisiana Power and Light's capital structure and coverages have improved as a result of high-cost debt refinancings and strong internal cash generation. Internal cash generation will continue to show strength with recovery of the Waterford 3 deferrals. The Entergy operating companies have an agreement under which some of the systems generating capacity and other power sources are shared. This strategy is expected to allow the company to defer the need to build new generating capacity until 2000. However, coverages are lower and debt higher when adjusted for purchased power. The company has instituted a base rate freeze through 1994. Management has successfully kept operating and maintenance costs down; other savings have been achieved through the centralization of management. Electric rates are relatively low, and the company has some pricing flexibility to meet large user needs. Sales growth will continue to be moderate due to the slow service territory economy. Louisiana Power and Light, a subsidiary of Entergy Corporation, provides retail and wholesale electric service in north central and northeast Louisiana. -0- 11/10/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (ETR)
CO: Louisiana Power and Light Company ST: Louisiana IN: UTI SU: RTG
LD -- NY097 -- 2930 11/10/93 16:53 EST