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PHILADELPHIA ELECTRIC $500 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS 'A-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Aug. 17 /PRNewswire/ -- Philadelphia Electric Co.'s (PECO) $500 million in three new issues of first and refunding mortgage bonds are rated 'A-' by Fitch. The new bonds include $200 million 7-1/8 percent bonds due Aug. 15, 2023, $75 million 6-3/8 percent bonds due Aug. 15, 2005, and $225 million 5-3/8 percent due Aug. 15, 1998. The new issues are takedowns from a $1 billion shelf registration rated 'A-'. The credit trend is improving.
 The ratings reflect PECO's strong cash flow, moderate capital requirements, and aggressive refinancing and cost containment programs that should continue to benefit bondholder protection measures.
 During 1991 and 1992, PECO refunded and refinanced over $2 billion of debt and preferred stock. This reduced annual interest expense by roughly $100 million, resulting in stronger capital ratios and higher interest coverage. Year to date, PECO has refunded and refinanced roughly $900 million of additional debt and preferred stock. The company also eliminated nearly 1,500 positions and in 1990 reduced its common stock dividend by about 45 percent. Going forward, further improvement is expected. Construction requirements of about $530 million to $550 million annually over the next several years are easily manageable and should be funded largely with internally generated cash.
 Major challenges include ongoing cost control, the ability to continue to market 799 megawatts of Limerick generating plant capacity off system, and maintaining improved nuclear performance.
 Philadelphia Electric Co. provides electric and gas service in southeastern Pennsylvania.
 -0- 8/17/93
 /CONTACT: Robert Hornick of Fitch, 212-908-0564/
 (PE)


CO: Philadelphia Electric Co. ST: Pennsylvania IN: UTI SU: RTG

SM -- NY072 -- 3670 08/17/93 15:39 EDT
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Publication:PR Newswire
Date:Aug 17, 1993
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