DUFF & PHELPS: PHILADELPHIA ELECTRIC COMPANY $225 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'BBB+'
CHICAGO, Oct. 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB+' (Triple-B-Plus) to Philadelphia Electric Company's issuance of $225 million of first and refunding mortgage bonds. The 7-1/4 percent bonds are non-callable for five years and due Nov. 1, 2024. Proceeds will be used to refinance higher cost debt and preferred stock and for other corporate purposes. Credit protection measures have improved as a result of cost cutting, the return to more normal weather, and refunding and reduction of higher cost debt and preferred stock. Continued gradual improvement is expected along with a slowly declining debt level. Internally generated cash is expected to cover over 100 percent of the reduced ongoing capital expenditure program. Strong nuclear plant operating performance and related control of operating and maintenance expenses will be important given the company's relatively large concentration of high embedded cost, nuclear power assets. The Limerick nuclear plant has run very well, with Unit 2 setting a world record in 1992 for the longest continuous run of any commercial light-water nuclear reactor. Recently, Limerick Unit 1 returned to service following an automatic shut down due to a faulty cable. Unit 3 at the Peach Bottom plant, which has recently performed better than in the past (currently has greater than 85 percent capacity factor), is down for scheduled maintenance and is expected to be back on-line by December. Excess generating capacity may hinder the company from a competitive positioning standpoint. Philadelphia Electric provides electric and gas service in southeastern Pennsylvania. Total population of the service area, which includes the city of Philadelphia, is approximately 3.7 million. -0- 10/25/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (PE)
CO: Philadelphia Electric Company ST: Pennsylvania IN: UTI SU: RTG
CK -- NY111 -- 6543 10/25/93 17:03 EDT
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|Date:||Oct 25, 1993|
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