DUFF & PHELPS RATES SOUTHERN CALIFORNIA GAS COMPANY'S $125 MILLION FIRST MORTGAGE BONDS 'A+'
CHICAGO, June 10 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Southern California Gas Company's $125 million issue of 7 1/2 percent first mortgage bonds due June 15, 2023. The bonds, which were sold from an existing shelf registration, are non-callable for 10 years. Proceeds will be used to refund higher coupon debt and for construction. Approximately $450 million of similarly rated bonds remain on the shelf. Southern California Gas has well-managed gas distribution operations and a balanced capital structure. Financial protection measures are projected to remain strong. Internally generated cash, net of dividends to the parent, should be sufficient to meet about two-thirds of capital requirements in 1993. The company is expected to maintain a solid equity base as capital expenditures begin to accelerate for system replacement and enhancements. Continued regulatory support is needed in view of the ongoing capital program and the changing gas marketplace under FERC Order 636. The California Public Utilities Commission has recognized the increasing competition for Southern California Gas' highly price sensitive non-core customers. Last year, the Commission approved changes to better reflect the true cost of service to core and non-core customers. This should help to better position Southern California Gas against the threat of additional bypass of its system. Southern California Gas, the primary subsidiary of Pacific Enterprises, is the nation's largest natural gas distribution utility, serving southern and central California. -0- 6/10/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (PET)
CO: Southern California Gas Company ST: California IN: UTI SU: RTG
SM -- NY061 -- 0673 06/10/93 13:38 EST
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|Date:||Jun 10, 1993|
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