EASTERN EDISON COMPANY $100 MILLION FIRST MORTGAGE BONDS RATED 'A-'
CHICAGO, April 30 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A-' (Single-A-Minus) to Eastern Edison Company's three-part issuance of first mortgage bonds totaling $100 million. The rating applies to the $20 million 5-7/8 percent part due May 1, 1998, to the $40 million 6-7/8 percent portion due May 1, 2003, and to the $40 million 8 percent bonds due May 1, 2023. Eastern Edison's financial protection measures are expected to benefit from strong internal cash generation, low capital expenditures, cost control measures, and minimal rate requirements. The ratings recognize Eastern Edison's large fixed charge obligations as it purchases its capacity and energy requirements from subsidiary Montaup Electric. Through Montaup, Eastern Edison owns 2.9 percent of the Seabrook nuclear plant which has operated well. As a result of Eastern Edison's power arrangements, most of its costs are under the regulation of the Federal Energy Regulatory Commission (FERC). In December 1992, the Massachusetts Department of Public Utilities approved a settlement agreement resolving issues related to the rate case the company filed earlier in 1992. The settlement allowed Eastern an $8.1 million revenue increase (3.2 percent) effective this past January. Eastern Edison Company, a subsidiary of Eastern Utilities Associates, provides electric service to approximately 174,000 retail customers in portions of southeastern Massachusetts. -0- 4/30/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co. 312-368-3112/ (EUA)
CO: Eastern Edison Company ST: Massachusetts IN: UTI SU: RTG
LR -- NY038 -- 1888 04/30/93 10:39 EDT
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|Date:||Apr 30, 1993|
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