FLORIDA POWER CORPORATION $80 MILLION FIRST MORTGAGE BONDS RATED 'AA-'
CHICAGO, Feb. 4 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of AA-' (Double-A-Minus) to Florida Power Corporation's $80 million issuance of 6-7/8 percent first mortgage bonds due Feb. 1, 2008. The bonds, sold from an outstanding shelf registration, were priced at 99.854 to yield 7.0 percent. Proceeds will be used to repay commercial paper and for general corporate purposes. The $200 million of bonds remaining on the shelf are also rated AA-'. Florida Power has solid fundamentals including low rates, a diversified fuel mix, an economically healthy service area, and generally supportive regulation. External financing will increase, as expected, with construction of peaking capacity, transmission expansion, and distribution expenditures for a growing customer base. Florida Power's increasing purchased power commitments require that stronger credit protection measures be maintained. Supportive regulation as well as equity contributions from parent Florida Progress will be necessary. In September 1992, the Florida Public Service Commission approved a three-step, $86 million (9 percent) increase in base rates. The new rates are based on a 12 percent return on equity. Florida Power serves a healthy area in central Florida and along the Gulf coast which has experienced good sales growth. Florida Power is the utility subsidiary of Florida Progress Corporation, a diversified holding company with energy and transportation, development, and finance and life insurance operations. -0- 2/4/93 /CONTACT: James J. Stork, CFA of Duff & Phelps, 312-368-3125/
CO: Florida Power Corporation ST: Florida IN: UTI SU: RTG
LR -- NY067 -- 2961 02/04/93 12:02 EST
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|Date:||Feb 4, 1993|
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