DUFF & PHELPS: PHILADELPHIA ELECTRIC COMPANY $1 BILLION FIRST AND REFUNDING MORTGAGE BONDS (SHELF) RATED 'BBB+'
CHICAGO, Aug. 9 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB+' (Triple-B-Plus) to Philadelphia Electric Company's shelf registration for $1 billion of first and refunding mortgage bonds. Proceeds will be used to refinance higher cost debt and preferred stock and for other corporate purposes. Combined with a previous registration, $1.225 billion of first and refunding mortgage bonds are available for sale. Credit protection measures have improved as a result of cost cutting, a return to more normal weather, and refunding and reduction of higher cost debt and preferred stock. Gradual improvement is expected with the debt level continuing to decline. Internally generated cash is expected to cover over 100 percent of a lower ongoing capital expenditure program. Existing generating capacity should be sufficient well into the next decade. Strong nuclear plant operating performance and related control of operating and maintenance expenses will be important given the company's relatively high concentration of nuclear power assets. The Limerick nuclear plant has run very well, with unit 2 setting a world record in 1992 for the longest continuous run of any commercial light-water nuclear reactor. This is somewhat offset by the below average capacity factors achieved at units 1 and 2 at the Peach Bottom plant in 1992. Philadelphia Electric provides electric and gas service in southeastern Pennsylvania. Total population of the service area, which includes the city of Philadelphia, is approximately 3.7 million. -0- 8/9/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (PE)
CO: Philadelphia Electric Company ST: Pennsylvania IN: UTI SU: RTG
MP -- NY048 -- 0726 08/09/93 11:36 EDT
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|Date:||Aug 9, 1993|
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