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UNITED ILLUMINATING 'BBB-' NOTES, DEBENTURES AFFIRMED, OFF FITCHALERT -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 6 /PRNewswire/ -- United Illuminating Co.'s $300 million 'BBB-' medium-term notes, $2.2 million 'BBB-' debentures, and $60.9 million 'BB+' preferred stock are affirmed by Fitch. The ratings are removed FitchAlert, where they were placed with positive implications on Sept. 23, 1992. The credit trend is improving.
 The affirmations reflect the Dec. 16 rate decision by the Connecticut Department of Public Utility Control authorizing levelized rate increases of 2.66 percent per year in 1993 and 1994. The positive FitchAlert anticipated higher levelized rate increases of 3 percent per year over a four year period. While measures of bondholder protection are still expected to improve, they are not expected to reach levels appropriate for a higher rating within an acceptable timeframe.
 The rate increases scheduled for 1993 and 1994 conclude the phase-in of the company's Seabrook investment. United Illuminating has a 17.5 percent or 201 mw ownership interest in the Seabrook nuclear facility. Retail rates already reflect the first three in a series of rate increases associated with the five-year Seabrook phase-in. The company plans to file for the recovery of Seabrook deferred phase in costs in 1995.
 Credit quality has improved over the last several years largely due to the rate treatment of 70 percent of the company's Seabrook investment. Seabrook accounts for $687 million or approximately 50 percent of the company's net plant investment. Credit quality is also supported by adequate capacity enabling the company to postpone new baseload plant construction through the end of the decade, resulting in modest construction expenditures and healthy internal cash generation.
 Pretax interest coverage excluding AFUDC for the 12 months ending September 1992 was 1.64 times(x), a significant improvement over the 0.9x recorded at year-end 1989. During the same timeframe, internal cash generation of construction expenditures recovered to 148.6 percent from 25 percent. Total debt comprised 69.8 percent of capitalization at September 1992.
 -0- 1/6/93
 /CONTACT: Josephine Zeppieri, CFA of Fitch, 212-908-0575/
 (UIL)


CO: United Illuminating Co. ST: Connecticut IN: SU: RTG

PS -- NY018 -- 2123 01/06/93 10:26 EST
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Date:Jan 6, 1993
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