DUFF & PHELPS RATES UNION ELECTRIC COMPANY $100 MILLION FIRST MORTGAGE BONDS RATED 'A+'
CHICAGO, Jan. 12 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Union Electric Company's offering for $100 million of first mortgage bonds. The 7 percent bonds were priced at 99.81 to yield 7.015 percent to maturity. Union Electric's financial protection measures have benefited from cost containment, efficient operations, strong internal cash, and reduction of debt and interest expense. The company has relatively low rates and a sound customer base; industrials account for less than 30 percent of total load. With adequate purchased power sources and transmission capability, no baseload plant additions are scheduled before the year 2000. The largest of the near-term expenditures will be to meet Clean Air Act requirements, approximating $300 million. While the Callaway nuclear unit accounts for a substantial portion of generating assets, the facility has an excellent operating record. This years results have been affected somewhat by a 2.5 percent annual electric rate reduction (effective January 1, 1993) and increased operating expenses due to the summer flooding. Restricted coal deliveries, which increased power purchases from other utilities, as well as flood-related equipment repairs, led to a rise in costs. Union Electric Company is the largest electric company in the state of Missouri from which it derives most of its revenues. The company also serves a small portion of Illinois. -0- 1/12/94 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/
CO: Union electric Company ST: Illinois IN: UTI SU: RTG
WB -- NY085 -- 1567 01/12/94 17:35 EST
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|Date:||Jan 12, 1994|
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