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NARRAGANSETT ELECTRIC 'A' FIRST MORTGAGE BONDS AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

NARRAGANSETT ELECTRIC 'A' FIRST MORTGAGE BONDS AFFIRMED BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, June 15 /PRNewswire/ -- Narragansett Electric Co.'s $179.3 million 'A' first mortgage bonds and $26.5 million 'A-' preferred stock are affirmed by Fitch. The credit trend is stable.
 The ratings reflect the company's conservative capital structure and relatively low-risk construction expenditures that should be funded largely with internally generated cash. Rating maintenance assumes continued parent company equity support through a period of higher construction expenditures extending through 1994.
 NEC is a wholly owned subsidiary of New England Electric System operating in Rhode Island and regulated by the Rhode Island Public Utility Commission. NEC purchases all of its power from affiliated New England Power Co., which earns most of its revenues from wholesale power sales to affiliates. New England Power plans for and funds new generating capacity for NEC and other retail affiliates. However, NEC will share some funding responsibility for repowering the Manchester Street Station with New England Power.
 The 136 megawatt (mw) Manchester Street Station will be retrofitted with three combustion turbines increasing capacity to 490 mw. The total cost, including improvement to the local transmission system, is $600- $650 million. Narragansett's 20 percent share of this cost is $125 million-$130 million. Internal cash generation is expected to fund about 70 percent of construction spending, including the Manchester project, over the next five years compared to 64 percent during the most percent five year period.
 Debt as a percent of capitalization was 44.7 percent at the twelve months ended March 1992 and pretax interest coverage excluding AFUDC was 2.67 times. Total debt is expected to stabilize at about 45 percent and pretax coverage is expected to show improvement assuming constructive rate treatment.
 -0- 6/15/92
 /CONTACT: Josephine Zeppieri of Narragansett Electric, 212-908-0575/
 (NES) CO: Narragansett Electric Co. ST: Rhode Island IN: UTI SU: RTG


SM -- NY083 -- 0364 06/15/92 17:23 EDT
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Date:Jun 15, 1992
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