DUFF & PHELPS: NARRAGANSETT ELECTRIC COMPANY $50 MILLION FIRST MORTGAGE BONDS (SHELF) RATED 'A+'
CHICAGO, Oct. 5 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Narragansett Electric Company's shelf registration for up to $50 million of first mortgage bonds. Proceeds will be used to repay short-term debt. Narragansett Electric's financial protection measures will be constrained as construction spending increases with conversion of the Manchester Street Station. This joint project with affiliate New England Power is expected to provide an additional 300 mw of capacity by 1995. Narragansett Electric has responsibility for 10 percent of the generation-related improvements and 100 percent of the transmission improvements. Over the next several years, the construction program will require external financings. Earnings retention and capital contributions from parent, New England Electric System (NES), are expected to contain the debt leverage. A continuance of supportive regulation from the Rhode Island Public Utility Commission will be necessary. In the first quarter NES took a one-time $17.5 million after-tax charge associated with an early retirement and special severance package affecting all the subsidiaries (including Narragansett Electric). Efforts to streamline operations should help maintain the company's competitive posture and mitigate increasing regulatory pressures. Narragansett Electric Company provides electric service to a territory encompassing 82 percent of Rhode Island. Most of Narragansett Electric's power supplies are provided by its Federal Energy Regulatory Commission regulated affiliate, New England Power Company. -0- 10/5/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (NES)
CO: Narragansett Electric Company ST: Rhode Island, Illinois IN: OIL SU: RTG
LD -- NY087 -- 9124 10/05/93 18:33 EDT
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|Date:||Oct 5, 1993|
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