DUFF & PHELPS: THE UNITED ILLUMINATING COMPANY $300 MILLION UNSECURED DEBT SECURITIES (SHELF) RATED 'BBB-'
CHICAGO, Oct. 8 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB-' (Triple-B-Minus) to The United Illuminating Company's shelf registration for $300 million of unsecured debt securities. Proceeds will be used for debt repayment and redemption, and for general corporate purposes. United Illuminating's multi-year settlement agreement (1990) and recent rate order have supported, and are expected to modestly improve the company's credit fundamentals. Successful cost control will be important in holding rates down. A weak New England wholesale power market, higher-than-average rates, and the sluggish local economy will be restraining factors to the strengthening of credit quality. United Illuminating provides electric service in a 335 square mile area in southwestern Connecticut. The company has worked to diversify its fuel mix, substantially reducing its dependence on oil. United Illuminating has a 17.5 percent ownership interest in the Seabrook nuclear plant which has performed well to date. -0- 10/8/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (UIL)
CO: United Illuminating Company ST: Connecticut IN: UTI SU: RTG
CK -- NY019 -- 0109 10/08/93 11:19 EDT
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|Date:||Oct 8, 1993|
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