Printer Friendly

GEORGIA POWER $2.9 BILLION FIRST MORTGAGE BONDS RAISED TO 'A-' BY FITCH -- FITCH FINANCIAL WIRE --

GEORGIA POWER $2.9 BILLION FIRST MORTGAGE BONDS RAISED TO 'A-' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Feb. 21 /PRNewswire/ -- Georgia Power Co.'s $2.9 billion first mortgage bonds are raised to 'A-' from 'BBB+' by Fitch. Its preferred stock is raised to 'BBB+' from 'BBB.' The credit trend is improving.
 Credit quality is expected to show sustainable improvement over the next five years as a result of a recent rate increase, declining financial obligations associated with capacity and energy purchases, and the sale of a non-earning asset (Plant Scherer).
 The Georgia Public Service Commission authorized a $117 million retail rate increase in October 1991. This increase, the resolution of rate base treatment for the company's investment in the Vogtle 2 nuclear plant, and the successful sale of Plant Scherer Unit 4, will mark the end of a period of financial and regulatory uncertainty. The first of four installments of the Scherer 4 unit sale was completed in 1991 when 300 mw were sold for $291 million and proceeds were applied to the redemption of high coupon debt. The remaining three installments are scheduled to be completed by 1995.
 Georgia Power financed a portion of Plant Scherer and Plant Vogtle construction by entering joint ownership agreements. These agreements with Oglethorpe Power Corp. and the Municipal Electric Authority of Georgia obligate Georgia Power to buy back declining portions of capacity and energy for periods of up to ten years. The cash financial obligation associated with these purchases was $412 million in 1990 and will decline to $33 million by 1995. The capacity and energy expense is recovered through rates as part of cost of service.
 Credit quality is also supported by adequate generating capacity. The company's resource plan does not indicate the need to add base load capacity until 2007. Over the next five years, Georgia Power is expected to internally fund a significant portion (about 90 percent on average) of capital expenditures, including acid rain requirements. This compares favorably with the 51 percent average over the five-year period ending 1990. Pretax coverage excluding AFUDC for the 12 months ended September 1991 was 2.37 times (x). This measure is expected to improve to 3.0x by 1992. The company's capital structure will become stronger over the next several years as the debt to capital ratio declines by several percentage points from the 51.6 percent recorded at September 1991.
 -0- 2/21/92
 /CONTACT: Josephine Zeppierik of Fitch, 212-908-0575/ CO: Georgia Power Co. ST: Georgia IN: UTI SU: RTG


KD -- NY054 -- 1474 02/21/92 15:31 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 21, 1992
Words:430
Previous Article:JOHNSON & JOHNSON-PROJECT HOPE NURSING CLINICAL CENTERS OF EXCELLENCE PROGRAM TO BE CREATED IN CENTRAL EUROPE
Next Article:BG&E REPORTS EARNINGS FOR THE MONTH ENDED JAN. 31, 1992
Topics:


Related Articles
IOWA POWER $125 MILLION SHELF DEBT RATED
DUKE POWER COMPANY $425 MILLION BOND, NOTE SHELVES RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
PUBLIC SERVICE ELECTRIC & GAS $250 MILLION BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
VIRGINIA ELECTRIC $680 MILLION SENIOR DEBT RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
DUKE POWER $275 MILLION DEBT RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
WESTERN RESOURCES $250 MILLION FIRST MORTGAGE BONDS RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
WESTERN RESOURCES $350 MILLION SHELF DEBT RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --
MIDWEST POWER SENIOR DEBT 'A', CP 'F-1' BY FITCH AFTER MERGER -- FITCH FINANCIAL WIRE --
CORRECTION TO MIDWEST POWER SENIOR DEBT 'A', CP 'F-1' BY FITCH AFTER MERGER
Fitch Withdraws Minnesota Power & GPU Units Ratings -- Fitch Financial Wire --

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters