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PENNSYLVANIA POWER & LIGHT $500 MILLION FIRST MORTGAGE BOND SHELF RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 PENNSYLVANIA POWER & LIGHT $500 MILLION FIRST MORTGAGE
 BOND SHELF RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, April 24 /PRNewswire/ -- Pennsylvania Power & Light Co.'s (PP&L) shelf registration of $500 million first mortgage bonds are rated 'A' by Fitch. Ratings on the company's outstanding securities are affirmed as follows: $2.2 billion first mortgage bonds and $208 million secured pollution control bonds 'A,' $392 million preferred stock 'A-,' and $115 million preference stock 'BBB+.' Commercial paper is affirmed at 'F-1.' The credit trend is changed to stable from improving.
 Due to strong cash flow, moderate capital requirements, and refinancing opportunities, bondholder protection measures have improved steade in credit trend. The ability to control costs, however, will be critical in meeting the company's corporate goal of not raising rates before 1995 at the earliest.
 Capital requirements over the next several years are rising, partly because of acid rain related expenditures, but remain manageable since PP&L has no need for additional generating capacity. Cash flow is estimated to provide about 80 percent of expenditures over the next three years compared to well over 100 percent the past three years. Moderate sales growth, cost control measures including a reduction in employees to 7,500 by 1995 primarily through attrition, and additional refinancings are expected to keep earnings protection measures and capital ratios relatively constant.
 For the 12 months ended Dec. 31, 1991, pretax interest coverage (including interest on lease obligations) was 3.06 times (x) compared to 2.86x the prior year. The year end capital structure included 50.9 percent debt, 39 percent common equity and 10.1 percent preferred stock. Internal cash generation provided 123 percent of capital expenditures. Based on PP&L's financing plans, total debt (including capital lease obligations) should rise moderately to about 52 percent over the next two years and common equity to about 40 percent. Interest coverage is expected to remain in the 3.0x range.
 Pennsylvania Power & Light Co. provides electric service to 1.2 million customers in central eastern Pennsylvania. Headquarters are located in Allentown, Pa.
 -0- 4/24/92
 /CONTACT: Robert Hornick of Fitch, 212-908-0564/
 (PPL) CO: Pennsylvania Power & Light Co. ST: Pennsylvania IN: UTI SU: RTG


CK -- NY049 -- 2468 04/24/92 12:39 EDT
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Publication:PR Newswire
Date:Apr 24, 1992
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