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OTTER TAIL POWER $50 MILLION FIRST MORTGAGE BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

OTTER TAIL POWER $50 MILLION FIRST MORTGAGE BONDS RATED 'AA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 17 /PRNewswire/ -- Otter Tail Power Co.'s new issue of $50 million first mortgage bonds is rated 'AA' by Fitch. The offering is in two parts: $30 million 8-1/4 percent bonds due Aug. 1, 2022, and $20 million 7-1/4 percent bonds due Aug. 1, 2002. The issues area final takedown from a shelf registration.
 Ratings are supported by a strong financial profile, moderate capital requirements, and absence of external financing stress. Pretax interest coverage has been well above 4.0 times(x) for the past nine years, with a low of 4.07x in 1983. For the twelve months ended March 31, pretax interest coverage was 4.40x, or 3.46x including preferred dividends. Allowance for funds used during construction contributed about five basis points to the coverage ratio and accounted for only about 2 percent of net income.
 Lack of external financing stress and low acid rain exposure are expected to permit interest coverage and capital ratios to remain relatively strong. Accordingly, the credit trend is stable. Otter Tail Power is headquartered in Fergus Falls, Minn.
 -0- 7/17/92
 /CONTACT: Ed King of Fitch, 212-908-0574/
 (OTTR) CO: Otter Tail Power Co. ST: Minnesota IN: UTI SU: RTG


SH -- NY014 -- 0123 07/17/92 10:01 EDT
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Publication:PR Newswire
Date:Jul 17, 1992
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