KISSIMMEE UTILITY AUTHORITY, FLA. REVENUE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
KISSIMMEE UTILITY AUTHORITY, FLA. REVENUE BONDS RATED 'A' BY FITCH
-- FITCH FINANCIAL WIRE --
NEW YORK, Nov. 27 /PRNewswire/ -- Kissimmee Utility Authority's (KUA) $75.5 million Electric System Improvement and Refunding Revenue Bonds, Series 1991 are rated "A" by Fitch. The credit trend is improving, reflecting strong utility operations and expected further development of the service area. The bonds will be sold through negotiation the week of Dec. 2 by a syndicate led by Merrill Lynch & Co.
The authority's diversified and balanced resource mix, historically sound financial performance, and ability to maintain electric rates at current levels through 1998 are key rating components. A demonstrated record of solid financial operations includes debt service coverage consistently above 2.40x.
Since 1986, the authority has experienced above average growth in energy sales, reflecting expansion of Walt Disney World and the rapid development of the central Florida region. While the future success of Disney will have a meaningful influence on Kissimmee's growth, the city appears to be developing an economic base apart from Disney. Energy demand has been satisfied through a well conceived power supply program. While growth is projected at a slower rate in the future, it is expected to remain above average and will require the authority to build new generation throughout the decade. Final environmental permits and licenses are pending for Cane Island, the proposed site of the new generating facilities.
Financing the capital improvements will increase the amount of debt outstanding significantly by 1996 from current moderate levels. Electric rates are presently among the highest in the state at about 9 cents per kilowatt hour (kwh), but base rates have not been increased since 1985 and are not forecasted to increase through 1998.
/CONTACT: Susan M. Courtney, 212-908-0503, or Alan Spen, 212-908-0594, both of Fitch/ CO: Kissimmee Utility Authority ST: Florida IN: UTI SU: RTG SH -- NY007 -- 7640 11/27/91 09:23 EST