DUFF & PHELPS: SOUTHWESTERN ELECTRIC POWER COMPANY $125 MILLION FIRST MORTGAGE BONDS RATED 'AA+'
CHICAGO, Sept. 28 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA+' (Double-A-Plus) to Southwestern Electric Power Company's (SWEPCO) proposed offering of $125 million of first mortgage bonds. A rating of `AA+' (Double-A-Plus) also has been assigned to the company's shelf registration for $35 million of first mortgage bonds. Proceeds will be used to repay short-term debt, refinance long term debt, and for general corporate purposes. SWEPCO has a conservative capital structure, competitive rates, and minimal future rate increase requirements. The company's financial protection measures are expected to remain strong with a manageable construction program and ample generating capacity into the late 1990s. Increases in construction expenditures for the 1993-95 period are primarily for transmission and distribution improvements. In June, the company acquired an electric co-operative for $35 million. The acquisition will add 9,400 new customers (2.5 percent) to SWEPCO's system. Marketing of wholesale power could provide additional opportunities as growth in the service territory has been modest. Parent Central and Southwest Corporation's (NYSE: CSR) proposed merger agreement with El Paso Electric Company, as currently structured, is not expected to have a material impact on the credit quality of SWEPCO. SWEPCO provides electric service in a 25,000 square mile area in northeastern Texas, northwestern Louisiana, and western Arkansas. -0- 9/28/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (CSR)
CO: Southwestern Electric Power Company ST: Illinois IN: UTI SU: RTG
TM -- NY092 -- 6556 09/28/93 17:21 EDT
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|Date:||Sep 28, 1993|
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