DUFF & PHELPS: NEW ORLEANS PUBLIC SERVICE $30 MILLION GENERAL AND REFUNDING MORTGAGE BONDS DUE SEPT. 1, 2023 RATED 'BBB'
CHICAGO, Aug. 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "BBB" (Triple-B) to New Orleans Public Service Inc.'s (NOPSI) proposed $30 million offering of general and refunding mortgage bonds due Sept. 1, 2023. Proceeds will be used to retire outstanding first mortgage bonds. NOPSI's credit protection measures are improving as the company recovers $90 million of the $135 million of Grand Gulf 1 costs previously disallowed by regulators. Coverages should continue to improve until 2001, and then stabilize, when the Grand Gulf related revenue deferrals will be fully recovered. Strong cash flow and limited construction expenditures should allow NOPSI to retire debt and significantly improve its balance sheet over the same time frame. Improvement of credit protection measures also will be predicated on management's ability to operate within the Grand Gulf settlement, which freezes rates through 1996. The rating recognizes the company's significant Grand Gulf purchased power obligation, which substantially impacts debt protection measures. While NOPSI's reserve margin is low, access to the other Entergy operating companies' reserves balances supply. New Orleans Public Service, a subsidiary of Entergy Corp. (NYSE: ETR), provides electric service to the city of New Orleans. -0- 8/25/93 /CONTACT: John C. Dell, Duff & Phelps Credit Rating Co., 312-368-3161/ (ETR)
CO: New Orleans Public Service Inc. ST: Louisiana IN: UTI SU: RTG
LG -- NY034 -- 0318 08/25/93 11:56 EDT
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|Date:||Aug 25, 1993|
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