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LILCO SHELF RATED 'BBB' GENERAL AND REFUNDING BONDS, 'BBB-' DEBENTURES, PREFERRED BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 11 /PRNewswire/ -- Long Island Lighting Co.'s (LILCO) $615 million shelf registration is rated 'BBB' for general and refunding bonds and 'BBB-' for debentures and preferred stock. Together with a previous shelf registration, the company may sell securities, including common stock, totalling $903 million. The credit trend is improving.
 The rating reflects the assurance of electric rate increases, with incentives, through December 1993, continued aggressive refinancing of high-cost debt and preferred stock, and a significant improvement in earnings quality, cash flow, and internal cash generation over the next several years.
 Proceeds will be used to refund high-cost debt or preferred stock and to finance working capital requirements. From 1993-1995, the company estimates that about $1.4 billion of external financing will be required, principally to refund maturing debt and to meet operating and capital requirements. Additionally, LILCO intends to access the capital markets to refund high-cost debt and preferred stock. During 1992, the company issued about $1.9 billion in securities to repay bank debt, redeem or purchase high-cost debt or preferred stock, and to pay related redemption premiums. LILCO expects that existing generation coupled with conservation and load management programs and purchase power will be sufficient to meet energy demand through the end of the decade.
 In November 1992, the company received an electric rate increase of $88.8 million or 4.1 percent which became effective December 1. The increase represents the second year of a three-year electric rate plan adopted by the Public Service Commission in November 1991 which stipulated increases of approximately 4 percent to become effective Dec. 1, 1991, 1992, and 1993. The latest increase represents the fifth increase of two consecutive three-year rate plans. In 1989, the Public Service Commission approved a rate moderation agreement providing targets for electric rate increases in each year through 1999.
 LILCO also received a gas rate increase of $35.7 million effective Dec. 1, 1992. In arriving at this amount, the Public Service Commission deferred $10.9 million of LILCO's revenue requirements for future recovery in 1994-1995. The company's request for $50.3 million was based on returns of 10.49 percent on rate base and 12 percent on common equity. The final order allowed returns of 9.97 percent on rate base and 11 percent on common equity.
 -0- 2/11/93
 /CONTACT: Stephen Fedun, 212-908-0568, of Fitch/
 (LIL)


CO: Long Island Lighting Co. ST: New York IN: UTI SU: RTG

LR -- NY067 -- 5788 02/11/93 14:39 EST
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Date:Feb 11, 1993
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