DUFF & PHELPS RATES ALABAMA POWER COMPANY $100 MILLION FIRST MORTGAGE BONDS RATED 'A+'; $50 MILLION PREFERRED STOCK RATED 'A-'
CHICAGO, Nov. 16 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of 'A+' (Single-A-Plus) to Alabama Power Company's $100 million issuance of 7.3 percent first mortgage bonds due November 1, 2023. A rating of `A-' (Single-A-Minus) has been assigned to the company's $50 million issuance of adjustable rate Class A preferred stock. Proceeds will be used to repay short-term debt, to redeem another series of outstanding preferred stock, and for other general corporate purposes. Gradual improvement in Alabama Power's credit fundamentals has been achieved over the past few years. The company has benefited from aggressive cost control measures, a healthy service territory economy, and strong generating plant performance. The Rate Stabilization and Equalization mechanism has helped to ensure the stability of rates, earnings, and coverages. Maintenance of the improved level of interest coverages and the well-balanced capital structure is anticipated with minimal need for rate relief. Credit protection measures may experience some temporary pressures with the planned construction of several combustion turbine generating units for peaking capacity requirements. The first five units are scheduled for operation in 1995. The Alabama Public Service Commission has pre-approved plans for the construction of the units. Alabama Power, a subsidiary of Southern Company, provides electric service to 1.1 million customers in all but the northern-most part of Alabama. -0- 11/16/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (SO)
CO: Alabama Power Company; Southern Company ST: Alabama IN: UTI SU: RTG
WB -- NY101 -- 4249 11/16/93 17:15 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 16, 1993|
|Previous Article:||DUFF & PHELPS RATES NEW YORK TELEPHONE COMPANY $200 MILLION 7 PERCENT REFUNDING MORTGAGE BONDS DUE 2033|
|Next Article:||COLUMBUS SOUTHERN POWER 'BBB-' PREFERRED AFFIRMED BY FITCH, OFF ALERT -- FITCH FINANCIAL WIRE --|