DUFF & PHELPS: SOUTHERN INDIANA GAS & ELECTRIC COMPANY $175 MILLION FIRST MORTGAGE BONDS AND PREFERRED STOCK (SHELF) RATED 'AA' AND 'AA-'
CHICAGO, March 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings of "AA" (Double-A) and "AA-" (Double-A-Minus) to Southern Indiana Gas & Electric Company's shelf registration for $175 million of first mortgage bonds and preferred stock, respectively. Proceeds will be used to refund outstanding debt, fund construction, and for other corporate purposes. Southern Indiana Gas & Electric (SIGECO) has sound financial fundamentals and strong coverages. Reflecting the history of strong credit quality maintained by SIGECO and its management strategy, embedded debt costs are low. Temporary, but moderate downward pressure on credit measures is expected as the company enters a period of increased construction spending. Debt leverage is expected to be reduced and coverages increased as construction spending again abates. In October 1992, the Indiana Utilities Regulatory Commission approved a settlement regarding the company's clean air compliance plan, which removes considerable regulatory uncertainty. The company plans to install a dual scrubber on Culley Units 2 and 3, with construction completed by January 1995. The company filed a request for an increase in gas rates in November 1992. A final rate order is expected during the second half of 1993. The company's last general gas rate increase was in 1982. Southern Indiana Gas & Electric provides electric service to 115,000 customers and natural gas to 95,000 customers in southwestern Indiana. -0- 3/25/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating
CO: Southern Indiana Gas & Electric Company ST: Indiana IN: UTI SU: RTG
TS -- NY079 -- 9784 03/25/93 16:41 EST
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|Date:||Mar 25, 1993|
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