DUFF & PHELPS UPGRADES BOSTON EDISON COMPANY DEBENTURES/MEDIUM-TERM NOTES TO 'BBB+'
CHICAGO, Feb. 26 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has raised the rating of Boston Edison Company's debentures and medium-term notes to BBB+' (Triple-B-Plus) from BBB' (Triple-B). The following ratings also are assigned to Boston Edison's fixed income portion of its shelf registration for up $1.1 billion in securities, including common stock: debentures and medium-term notes - BBB+' (Triple-B-Plus); preferred stock - BBB-' (Triple-B-Minus); preference stock - BBB' (Triple-B-Minus). The company intends to issue the securities over the next two years, using proceeds for the refinancing of long and short- term debt and for capital expenditures. First Boston plans to close its first mortgage indenture. The company has initiated the closing process by calling for redemption all outstanding first mortgage bonds, with the exception of two small series totaling approximately $40 million. This is an amount that will be small in relation to the company's overall debt structure. Upon successful refinancing of the first mortgage bonds, Boston Edison's debentures and medium-term notes will effectively become the company's senior most debt. The new BBB+' rating assumes the refinancing effort is successful. Boston Edison's financial measures have gradually improved under the 1989 Pilgrim settlement agreement. Common equity sales are expected to support some strengthening in the currently leveraged capital structure. Financial improvement will depend on regulatory support and continued satisfactory operating performance of the Pilgrim Nuclear Plant. In October 1992, the Massachusetts Department of Public Utilities approved a three-year rate settlement which calls for a freeze on base rates through October 1993. Rate increases for the second and third years will be about two and one-half percent each year. Boston Edison provides electric service in a 590 square mile area including Boston and 39 other Massachusetts communities. -0- 02/26/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (BSE)
CO: Boston Edison Company ST: Massachusetts IN: UTI SU: RTG
AH -- NY060 -- 1008 02/26/93 16:48 EST
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|Date:||Feb 26, 1993|
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