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PASADENA, CALIF. $18.5 MILLION ELECTRIC REVENUE BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Oct. 12 /PRNewswire/ -- Pasadena, Calif.'s $18.5 million electric works revenue bonds, 1993 series are rated 'AA' by Fitch. Pasadena's $74.3 million outstanding 'AA' electric works revenue bonds are affirmed. The credit trend is stable. The bonds will sell competitively Oct. 20.
 The rating reflects the power division's strong financial operations, competitive electric rates, and a stable service area. In addition to consistently high debt service coverage and a healthy cash position, the power division's debt retirement is fairly rapid. While residential rates exceed the national average, they are very competitive with Southern California Edison Co. (SCE) and other neighboring utilities. This rate competitiveness should continue since only moderate increases are forecast through fiscal 1998.
 The power division's long-term purchased power contract with the Intermountain Power Agency (IPA) and its membership in the Southern California Public Power Authority (SCPPA) provide access to a diverse mix of generating resources and transmission arrangements. Current available capacity, combined with moderate growth projections, ensure that additional capacity will not be required until after 2000. The Pasadena economy has remained fairly stable despite the ongoing recession in California.
 While California's recent budget problems impacted many localities, including Pasadena, increased transfers from the power division to the city's general fund have been manageable. Although the power division's direct debt load is low, substantial off-balance sheet debt obligations through the IPA and SCPPA financings increase the overall debt load.
 -0- 10/12/93
 /CONTACT: Susan M. Courtney, 212-908-0503, or Josephine Zeppieri, CFA, 212-908-0575, both of Fitch/


CO: ST: California IN: UTI SU: RTG

TM -- NY108 -- 1340 10/12/93 17:28 EDT
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Publication:PR Newswire
Date:Oct 12, 1993
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