DUFF & PHELPS RATES NORTHERN ILLINOIS GAS COMPANY'S PROPOSED $50 MILLION FIRST MORTGAGE BONDS 'AA+'
CHICAGO, June 21 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA+' (Double-A-Plus) to Northern Illinois Gas Company's planned issue of $50 million of 30-year first mortgage bonds to be sold from an existing shelf registration. Proceeds will be used to refinance certain first mortgage bonds. Northern Illinois Gas (NI-Gas) has maintained strong financial protection measures and a conservative capital structure. The company's good storage capabilities and five pipeline connections position it well for 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. Internally generated funds will cover more modest capital requirements over the next three years. 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- 6/21/93 /CONTACT: David W. Eisinger of Duff & Phelps, 312-368-3145/ (GAS)
CO: Northern Illinois Gas Company ST: Illinois IN: UTI SU: RTG
GK -- NY077 -- 4162 06/21/93 16:11 EDT
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|Date:||Jun 21, 1993|
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