DUFF & PHELPS: MISSISSIPPI POWER & LIGHT $282.5 MILLION SHELF GENERAL AND REFUNDING MORTGAGE BONDS RATED 'BBB'; PREFERRED STOCK RATED 'BBB-'
CHICAGO, Oct. 6 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings of "BBB" (Triple-B) and "BBB-" (Triple-B-Minus) to Mississippi Power & Light Company's $282.5 million shelf registration for general and refunding mortgage bonds and preferred stock, respectively. Combined with a previous registration, $350 million of fixed income securities are available for sale. Mississippi Power & Light has demonstrated improvement in credit fundamentals. Despite sub-par demographics within its service territory, financial measures are anticipated to remain relatively stable due to lower interest expense and strong cash flow. Recovery of deferred Grand Gulf 1 purchased power costs, which began in 1991, will contribute to gradually improve internal cash generation. Cash coverages are expected to stabilize in 1998 after the Grand Gulf 1 deferrals are fully recovered. The Federal Energy Regulatory Commission's authorization for Mississippi Power & Light to sell wholesale power at market based rates and to provide for open-access to other electric utilities will provide increased marketing opportunities for Mississippi Power & Light and the entire Entergy system. However, this also exposes the company and the system to the risk of load or revenue loss due to competition with alternative suppliers. Mississippi Power & Light Company, a subsidiary of Entergy Corporation (NYSE: ETR), provides electric service in the western Mississippi region. -0- 10/6/93 /CONTACT: James J. Stork of Duff & Phelps Credit Rating Co., 312-368-3125/ (ETR)
CO: Mississippi Power & Light Company; Entergy Corporation ST: Mississippi IN: UTI SU: RTG
LG -- NY068 -- 9433 10/06/93 15:27 EDT
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|Date:||Oct 6, 1993|
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