DUFF & PHELPS RATES NORTHERN ILLINOIS GAS COMPANY'S $50 MILLION FIRST MORTGAGE BONDS 'AA+'
CHICAGO, April 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed its "AA+" (Double-A-Plus) rating on Northern Illinois Gas Company's issue of $50 million 5 7/8 percent first mortgage bonds due May 1, 2000. The bonds were sold from an existing shelf registration. Proceeds from the offering will be used for retirement of higher coupon debt. Northern Illinois Gas (NI-Gas) has demonstrated strong financial measures and conservative financial management. With connections to five interstate pipelines and a large amount of storage capacity, the company is well positioned to exploit the changing industry environment under FERC Order 636. NI-Gas has broadened its range of services and initiated new rate schedules to improve its competitive position and foster growth. Capital needs are modest and should be funded completely through internal cash. The company's service area in northern Illinois (primarily Chicago suburbs) offers both economic diversity and customer growth. Such growth, while moderating from prior levels due to the weakened economy and soft construction market, is projected to remain steady. Northern Illinois Gas Company, a subsidiary of NICOR Inc., distributes natural gas to over 1.7 million customers in the northern third of Illinois, excluding Chicago. In addition to selling gas to all customer classes, NI-Gas provides transportation, gas storage, and supply backup services to commercial and industrial customers who purchase their own gas. -0- 4/29/93 /CONTACT: David W. Eisinger, CFA of Duff & Phelps Credit Rating Co., 312-368-3145/ (GAS)
CO: Northern Illinois Gas Company ST: Illinois IN: UTI SU: RTG
TS -- NY120 -- 2892 04/29/93 17:10 EDT
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|Date:||Apr 29, 1993|
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