Printer Friendly

KANSAS GAS & ELECTRIC $65 MILLION 6.5 PERCENT FIRST MORTGAGE BONDS RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 29 /PRNewswire/ -- Kansas Gas & Electric Co.'s $65 million 6.5% first mortgage bonds due Aug. 1, 2005, are rated 'A-' by Fitch. The issue is a takedown from a previously rated shelf registration. KGE's rating reflects consummation of a merger with Western Resources, Inc. (formerly Kansas Power & Light Co.) whereby KGE became a wholly owned subsidiary of Western Resources. Western Resources' senior debt is also rated 'A-'. The credit trend is stable.
 Strong cash flow and operational synergies for the combined utility should permit gradual but steady improvement of its highly leveraged consolidated balance sheet and relatively weak coverage ratios for its rating category. Debt leverage was 60% and pre-tax interest coverage was 2.3 times at March 31. Capital expenditures over the next five years are expected to be over 90% funded with internally generated cash. During the first fifteen months of combined operations, merger-related cost savings, which are estimated at $180 million over the first five years, have exceeded projections.
 Western's recent agreement to sell all of its Missouri gas operations to Southern Union for about $360 million should accelerate the anticipated deleveraging. Estimated book value of these properties is about $285 million and they contribute about 19 percent to Western's total operating revenues but only 5% to operating income. Western expects to complete the sale, which requires a number of regulatory approvals early next year.
 -0- 7/29/93
 /CONTACT: Ed King of Fitch, 212-908-0574/
 (WR)


CO: Kansas Gas & Electric Co. ST: Kansas IN: UTI SU: RTG

SM -- NY131 -- 7487 07/29/93 17:43 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 29, 1993
Words:263
Previous Article:FIRST CHICAGO TO REDEEM SERIES A CONVERTIBLE PREFERRED STOCK
Next Article:/NYSE CLOSING, THURSDAY, JULY 29 /PRN/
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters