DUFF & PHELPS: ORLANDO UTILITIES COMMISSION $137.5 MILLION WATER AND ELECTRIC SUBORDINATED REVENUE BONDS, SERIES 1994A RATED 'AA+'
CHICAGO, Jan. 12 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings of `AA+' (Double-A-Plus) to Orlando Utilities Commission's (OUC) offering of approximately $137.5 million water and electric revenue bonds, Series 1994A. Proceeds will be used for refunding. The bonds are secured by and payable solely from a lien on and pledge of the net revenues derived from the operation of the water and electric system. The debt service reserve account, fully funded at time of issuance, requires that an amount equal to the lesser of 10 percent of the original proceeds, maximum annual debt service, or 125 percent of average annual debt service be maintained. OUC's electric and water utilities have demonstrated excellent operational and financial characteristics. Debt service has been maintained well above the required minimum indenture levels. OUC has a competitive cost structure, a diversified and growing service area, and well-maintained facilities. Base load growth will be met by construction of the 440 mw coal-fired Stanton Energy Center Unit No. 2. Construction began in March 1993 with commercial operation expected in June 1996. OUC will operate the new unit and will have a 71.59 percent ownership interest. Despite significant new money needs, coverages are expected to remain strong. OUC exercises full authority over its rates and operations, which are governed by a five-member independent commission. The expected closure of the Orlando-based Naval Training Center, OUC's largest water customer and second largest electric customer, is expected to occur in stages over several years. The closing is not expected to have a significant impact on OUC's credit quality, particularly as the real estate is developed to attract new businesses. OUC supplies electric and water service to Orlando and contiguous areas in Orange County, Florida. Electric operations provide the bulk of operating revenue. OUC has full or partial ownership interests in five generating facilities and a diversified energy mix of coal, natural gas, nuclear, and oil. -0- 1/12/94 /CONTACT: William A. Abrams of Duff & Phelps Credit Rating Co., 312-368-3112/
CO: Orlando Utilities Commission ST: Florida IN: UTI SU: RTG
LD -- NY088 -- 1575 01/12/94 17:48 EST
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|Date:||Jan 12, 1994|
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