DUFF & PHELPS: NEW ORLEANS PUBLIC SERVICE INC. $145 MILLION GENERAL AND REFUNDING MORTGAGE BONDS RATED (SHELF) 'BBB'
CHICAGO, Feb. 17 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of BBB' (Triple-B) to New Orleans Public Service Inc.'s $145 million shelf registration of general and refunding mortgage bonds. The bonds are expected to be issued shortly. Proceeds will be used for the retirement and redemption of outstanding securities. Credit protection measures are improving as the company continues to recover $90 million of its previously deferred Grand Gulf costs. The improvement trend in cash coverages should continue until 1998, then stabilize, when Grand Gulf deferrals will be fully recovered. Strong cash flow and limited construction expenditures should allow New Orleans Public Service to retire debt and significantly improve its balance sheet. Continued improvement also will be predicated on management's ability to operate within the Grand Gulf settlement, which includes a base rate freeze through 1996. The rating recognizes the company's significant Grand Gulf purchased power obligation, which substantially reduces coverages. New Orleans Public Service's reserve margin is low. Access to the other Entergy operating companies' reserves mitigates supply problems. New Orleans Public Service, a subsidiary of Entergy Corporation, provides electric service to the city of New Orleans. -0- 2/17/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps, 312-368-3112
CO: New Orleans Public Service Inc. ST: IN: UTI SU: RTG
WB -- NY082 -- 7364 02/17/93 13:07 EST
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|Date:||Feb 17, 1993|
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