DUFF & PHELPS: CHESAPEAKE & POTOMAC TELEPHONE COMPANY OF VIRGINIA $100 MILLION 6 1/8 PERCENT NOTES DUE 2005 RATED 'AAA'
CHICAGO, July 12 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AAA' (Triple-A) to Chesapeake & Potomac Telephone Company of Virginia's (C&P-Va.) $100 million issue of 6 1/8 percent notes due July 15, 2005. The non-callable notes were priced at 99.822 to yield 6.146 percent to maturity. Proceeds will be used to refinance higher cost debt. Chesapeake & Potomac Telephone Company of Virginia's key credit strengths include strong interest coverage, a low operating cost structure, and funding of construction expenditures largely from internal sources. Contributing to C&P-Va.'s solid financial performance are such qualitative factors as an economically attractive service territory and an above-average regulatory environment for telephone utilities. These strengths offset the competitive risk associated with C&P-Va.'s service area. Solid improvement in pretax interest coverage in 1993 is projected, resulting from a combination of good revenue growth and a decline in interest expense. Strong local service revenue growth, due to the high demand for enhanced services and solid access line growth, should more than offset declines in toll and network access revenues. Chesapeake & Potomac Telephone Company of Virginia provides service to over 2.7 million access lines in Virginia. The company is a wholly owned subsidiary of Bell Atlantic Corporation. -0- 7/12/93 /CONTACT: James J. Stork, CFA, of Duff & Phelps Credit Rating Co., 312-368-3125/ (BEL)
CO: Chesapeake & Potomac Telephone Company of Virginia ST: Virginia IN: TLS SU: RTG
MP -- NY050 -- 0436 07/12/93 12:50 EDT
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|Date:||Jul 12, 1993|
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