GEORGIA POWER COMPANY $500 MILLION FIRST MORTGAGE BONDS AND PREFERRED STOCK (SHELF) RATED 'A-' AND 'BBB+'
CHICAGO, March 9 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings of A-' (Single-A-Minus) and BBB+' (Triple-B-Plus) to Georgia Power Company's shelf registration for $500 million of first mortgage bonds and preferred stock, respectively. Combined with previous filings, a total of $1.03 billion of securities is available for sale. Proceeds will be used for construction and other corporate purposes. Georgia Power's intensified cost control measures and budget refinements have permitted some strengthening in financial protection measures and cash flow. Such measures will reduce the company's new money needs and result in lower interest expense. The company has been aggressively refinancing higher cost debt. The Georgia Public Service Commission recently certified Georgia Power's decision to build six combustion turbines to be put into operation in 1994 and 1995. The certification assures recovery of Georgia Power's investment through rates, assuming normal prudence requirements are met. This is the first certification granted under a 1991 law setting up the certification and resource planning process. Sales growth is not materializing as fast as originally planned. However, slower growth should allow Georgia Power to scale back construction, reducing new money external financing needs; this should leave Georgia Power in better financial position when spending needs increase to comply with clean air requirements in the mid-to-late 1990s. Georgia Power Company, a subsidiary of Southern Company, provides electric service to most of Georgia. -0- 3/9/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: Georgia Power Company ST: Georgia IN: UTI SU: RTG
LR -- NY047 -- 4501 03/09/93 11:57 EST
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|Date:||Mar 9, 1993|
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