DUFF & PHELPS: KENTUCKY UTILITIES COMPANY $123.5 MILLION FIRST MORTGAGE BONDS RATED 'AA'
CHICAGO, June 16 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to Kentucky Utilities Company's issuance of $123.5 million first mortgage bonds. The two-part offering consists of $61.5 million of 5.95 percent first mortgage bonds due June 15, 2000, and $62 million of 6.32 percent first mortgage bonds due June 15, 2003. Kentucky Utilities has maintained a conservative capital structure, stable credit protection measures, and strong cash flows. The company's conservative financial position will help it to better withstand financial pressures brought about by increased construction for new peaking capacity additions and acid rain compliance. A series of combustion turbines are scheduled to come on-line during the mid-to-late 1990s. Kentucky Utilities plans to install a scrubber to meet Phase I Clean Air Act requirements. Installation of an additional scrubber is planned for Phase II compliance. External financing will be required, and coverages may experience some temporary slippage from previously high levels. Supportive regulatory treatment will be important during this period of increased capital expenditures. Kentucky Utilities, a subsidiary of KU Energy Corporation (NYSE: KU), provides electric service to approximately 423,000 customers in central, southeastern, and western Kentucky and southwestern Virginia. -0- 6/16/93 /CONTACT: William A. Abrams of Duff & Phelps Credit Rating Co., 312-368-3112/ (KU)
CO: Kentucky Utilities Company ST: Kentucky IN: UTI SU: RTG
MP -- NY032 -- 2564 06/16/93 11:13 EDT
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|Date:||Jun 16, 1993|
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