DUFF & PHELPS: PACIFICORP $150 MILLION FIRST MORTGAGE BONDS RATED 'A'
CHICAGO, March 24 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A' (Single-A) to PacifiCorp's proposed offering of $150 million of first mortgage bonds. Concurrently, the fixed income security ratings for PacifiCorp,c?ifiCorp Holdings, Inc. (Holdings), and PacifiCorp Financial Services, Inc. (PFS) are reaffirmed as follows: PacifiCorp Mtg. Bonds/Sec. MTN `A' (Single-A) Preferred Stock `A-' (Single-A-Minus) Commercial Paper Duff 1 (One) Holdings Senior Debt `BB+' (Double-B-Plus) Commercial Paper Duff 3 (Three) PFS Senior Debt `BB+' (Double-B-Plus) Senior Subordinate Debt `BB' (Double-B) Junior Subordinate Debt `BB' (Double-B) Commercial Paper Duff 3 (Three) In February, PacifiCorp announced an agreement to sell NERCO, its mining and resource development subsidiary, to Kennecott Corporation for $385 million in cash. In return, Holdings will provide $225 million in financing support to Kennecott. The sale should improve earnings stability at Holdings and PacifiCorp, eliminating the exposure to oil, gas, gold, and silver commodity price swings. PacifiCorp's common dividend cut and expected use of sale proceeds to reduce debt should help to restore financial fundamentals. Reaffirmation of the ratings assumes the successful closing of the NERCO sale, expected in the second quarter of 1993. PacifiCorp's ratings are predicated on the continued strength of the electric utility operations where the majority of its earnings are derived. Electric utility operations benefit from an economically diversified and growing service territory, excellent transmission network, and favorable cost structures. PacifiCorp does not guarantee the debt of its direct or indirect subsidiaries (Holdings, PFS, etc.). Holdings' creditworthiness is now dependent upon the credit quality of and dividend flows from its two remaining subsidiaries: PFS, and Pacific Telecom. -0- 3/24/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/ (PPW)
CO: PacifiCorp ST: Oregon IN: UTI SU: RTG
WB -- NY053 -- 9150 03/24/93 13:43 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 24, 1993|
|Previous Article:||TEXAS UTILITIES ELECTRIC COMPANY $75 MILLION CUMULATIVE PREFERRED STOCK RATED 'BBB-' BY DUFF & PHELPS|
|Next Article:||TRANSPORTATION CAPITAL CORP. TENDER OFFER EXPIRES|