CHICAGO, May 16 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has
assigned a rating of 'A+' (Single-A-Plus) to Alabama Power Company's (Alabama
Power) $250 million issuance of 7.85 percent noncallable senior unsecured
notes due May 15, 2003. Proceeds will be used primarily to repay short-term
debt.
Alabama Power's credit quality reflects solid credit protection measures,
a strong competitive position, strengthening service territory economy and a
constructive regulatory environment. Alabama Power's financial fundamentals
are expected to remain highly stable in the near term.
Strong cash flow from operations is expected to fund the majority of
increased construction requirements in the near term. Periodic debt
issuances, balanced to maintain the current capital structure, are expected to
fund the remainder. Capital expenditures will be heavily focused on a
gas-fired generation expansion at Plant Barry and steam generator replacements
at the well-operated Farley Nuclear Plant.
Alabama Power's costs and rates are regionally competitive and cost
controls are expected to further augment the company's existing low-cost
profile in preparation for eventual competition longer-term. As part of
Southern Company's integrated power arrangement, Alabama Power is able to
purchase low-cost power from its affiliates to supplement already low-cost
generating capacity without the need to enter into firm contracts.
Alabama Power, a wholly owned subsidiary of Southern Company, is a public
utility engaged in the generation, transmission, distribution and sale of
electrical energy. Alabama Power's service territory covers the southern
two-thirds of the state of Alabama, including the cities of Mobile, Montgomery
and Birmingham.
SOURCE Duff & Phelps Credit Rating Co.
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Related links:
http://www.dcrco.com
CONTACT:
Brian M. Youngberg, CFA, 312-368-3332,
youngberg@dcrco.com, or John C. Dell, 312-368-3161,
dell@dcrco.com, both of Duff & Phelps Credit Rating Co.
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