DUFF & PHELPS: THE CHESAPEAKE AND POTOMAC TELEPHONE COMPANY OF WEST VIRGINIA $50 MILLION 6.05 PERCENT DEBENTURES DUE 2003 RATED 'AA'
CHICAGO, May 7 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "AA" (Double-A) to the Chesapeake and Potomac Telephone Company of West Virginia's $50 million offering of 6.05 percent debentures due 2003. Proceeds will be used to retire $50 million of 9 percent debentures due 2015. The rating reflects C&P of West Virginia's improved financial performance in recent years, excellent internal funds generation and moderate financial leverage, with debt comprising 42 percent of capital following the write-off of accumulated liabilities for postretirement health benefits. Duff & Phelps expects modest improvement in measures of credit protection under the incentive regulation framework adopted by the West Virginia Public Service Commission in December 1991. Although the new regulatory plan freezes basic rates through 1994, it also removes earnings constraints on competitive services. C&P of West Virginia's improved financial performance can be traced to stronger economic activity in its service territory, improved regulation, revenue growth from new services, and the company's commitment to expense control. Growth prospects have been enhanced by the company's commitment to deploying digital technology and anticipated moves of several large federal government agencies to the service territory. C&P of West Virginia provides local telecommunications services to over 691,000 access lines in West Virginia, approximately 85 percent of the lines in the state. Local services provide 48 percent of revenues, network access 28 percent, toll services 16 percent, and directory advertising and miscellaneous services 8 percent. C&P of West Virginia is a wholly owned subsidiary of Bell Atlantic Corporation. -0- 5/7/93 /CONTACT: James J. Stork of Duff & Phelps, 312-368-3125/ (BEL)
CO: The Chesapeake and Potomac Telephone Company of West Virginia ST: West Virginia IN: TLS SU: RTG
GK -- NY053 -- 6011 05/07/93 14:07 EDT
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|Date:||May 7, 1993|
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