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EAST KENTUCKY POWER COOPERATIVE $11.8 MILLION GUARANTEED BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Dec. 8 /PRNewswire/ -- Pulaski County, Ky. $11.8 million National Rural Utilities Cooperative Finance Corp. (CFC) guaranteed solid waste disposal revenue bonds (East Kentucky Power Cooperative, Inc. Project) pooled series 1993B are rated 'A+' by Fitch. The credit trend is stable. The bonds are scheduled to sell on Dec. 9 by a Lehman Brothers syndicate.
 The bonds initially will be issued in the semiannual mode with interest paid semiannually. During this mode bonds may be tendered for purchase on the first business day following any interest calculation period for the bonds on at least 15 days' notice to the trustee. Under a standby bond purchase agreement, CFC will purchase any bond tendered and not remarketed.
 The rating reflects the unconditional guarantee provided by CFC to make full and timely payments of principal and interest on the bonds. The bonds will be secured by, and subject to, the pool indenture. CFC is a not-for-profit cooperative association responsible for providing its rural electric cooperative members with supplemental financing to the Rural Electric Administration's (REA) loan program. In addition to direct loans, CFC provides guarantees for tax-exempt financing of pollution control facilities and other properties constructed or acquired by its members.
 CFC's sound financial performance continues, despite recent financial difficulties of some of its larger borrowers. For fiscal year ended May 31, 1993, CFC reported a times interest earned ratio (TIER) of 1.16 times (x), above targeted levels. Added protection is provided by a $172.6 million allowance for loan and guarantee losses, which as of May 31, 1993, represented 2.13% of total loans and guarantees outstanding. Other strengths include a large and diverse membership and a first lien on members' assets and future revenues. Credit concerns include continued exposure to Deseret Generation & Transmission Cooperative, one of CFC's larger borrowers, which is operating under a restructuring agreement with its major creditors, and uncertainty related to the changing rural electric cooperative industry.
 East Kentucky Power Cooperative, Inc. is a generation and transmission (G&T) cooperative, which provides wholesale electric service to its 18 distribution cooperative members. East Kentucky Power satisfies its members requirements through several coal-fired facilities and purchases from the Southeastern Power Administration. The cooperative expects to decide by late 1993 or early 1994 whether to continue construction of an additional coal-fired unit. In 1992, East Kentucky Power reported a TIER of 1.18x while the members' average TIER was 2.38x.
 -0- 12/8/93
 /CONTACT: Susan M. Courtney, 212-908-0503 or Alan Spen, 212-908-0594, both of Fitch/


CO: National Rural Utilities Cooperative Finance Corp. ST: Kentucky IN: SU: RTG

WB -- NY102 -- 1949 12/08/93 17:18 EST
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Publication:PR Newswire
Date:Dec 8, 1993
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