MASSACHUSETTS ELECTRIC COMPANY $65 MILLION PREFERRED STOCK (SHELF) RATED 'A+'
CHICAGO, April 23 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Massachusetts Electric Company's shelf registration for $65 million of preferred stock. Proceeds will be used to refund outstanding preferred stock, reduce short-term debt, or fund construction. Massachusetts Electric maintains a conservative capital structure aided by occasional equity contributions from its parent, New England Electric System. Generating capacity is provided by its affiliate, New England Power, under an all-requirements contract. Rates thereunder are set by the Federal Energy Regulatory Commission. Construction expenditures related to improvements and additions to Massachusetts Electric's distribution system are expected to require some external financing over the next few years. The increased capital base will continue to require supportive regulatory treatment to maintain reasonable protection measures. The Massachusetts Commission authorized a rate increase of $45.6 million (3.4 percent) in September 1992. The order reflected return on equity and equity capitalization ratios of 11.75 percent and 51.25 percent, respectively. Massachusetts Electric Company, a wholly owned subsidiary of the New England Electric System, is engaged primarily in the distribution and sale of electricity at the retail level. The company's service territory covers approximately 41 percent of the area of the state of Massachusetts. -0- 4/23/93 /CONTACT: William A. Abrams, CFA, of Duff & Phelps Credit Rating Co., 312-368-3112/ (NES)
CO: Massachusetts Electric Company ST: Massachusetts IN: UTI SU: RTG
LR -- NY051 -- 0056 04/23/93 12:25 EDT
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|Date:||Apr 23, 1993|
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