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NORTH CAROLINA MUNICIPAL POWER $200 MILLION COMMERCIAL PAPER RATED 'F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, May 25 /PRNewswire/ -- North Carolina Municipal Power Agency No. 1's $200.6 million Catawba electric revenue commercial paper (CP) is rated 'F-1' by Fitch. Proceeds of the program, together with other available funds, will be used to redeem on June 25, 1993 approximately $217.0 million of outstanding Catawba electric revenue bonds, series 1979, 1981, 1982, and 1983. Goldman, Sachs & Co. will act as the CP dealer. The rating on approximately $2.6 billion of outstanding Catawba electric revenue bonds is affirmed at 'A'. The credit trend is stable.
 A diversified portfolio of nuclear generating projects and power supply agreements with Duke Power Co. provide a stable resource mix for the agency's participants. Member systems demonstrate positive electric operations and are demographically sound. The use of demand-side management programs and innovative rate designs, together with available rate stabilization funds, will help to offset reductions in power sales to Duke under the sell-back arrangement. Even with these programs, participants' electric rates are expected to rise significantly over the next several years, raising issues about rate competitiveness.
 Liquidity for the CP is provided by a three-year $200.6 million bank credit agreement with Bank of America N.T. & S.A. as agent and NationsBank of North Carolina N.A. as co-agent, acting as lead banks for this transaction. Primary sources of payment for the CP include: (i) agency revenues junior to the Catawba electric revenue bonds; (ii) moneys on deposit in the principal account of the payment fund; and (iii) proceeds of bonds, notes or other evidences of indebtedness. The agency further covenants to debtholders to establish rates and charges sufficient to meet its obligations on bonds, CP, and other financial obligations. Each CP instrument will mature not later than 270 days from its date of issuance and bear an annual interest rate not in excess of 15 percent. The maximum aggregate principal amount of CP coming due on any particular day is limited to $50 million.
 The resolution authorizing the issuance of CP is in an aggregate principal amount not to exceed $275 million. Prior to increasing the amount of paper outstanding above the existing aggregate commitment provided by the banks, the agency must receive written confirmation from each rating agency that the increase will not result in a withdrawal, suspension, or reduction of the CP rating.
 -0- 5/25/93
 /CONTACT: Alan Spen, 212-908-0594, or Susan M. Courtney, 212-908-0503, both of Fitch/


CO: North Carolina Municipal Power Agency No. 1 ST: North Carolina IN: UTI SU: RTG

SH -- NY034 -- 2058 05/25/93 09:57 EDT
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Publication:PR Newswire
Date:May 25, 1993
Words:428
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