ML19322C537
| ML19322C537 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 07/19/1979 |
| From: | Vandenberg R NRC OFFICE OF MANAGEMENT AND PROGRAM ANALYSIS (MPA) |
| To: | |
| References | |
| TASK-TF, TASK-TMR NUDOCS 8001170866 | |
| Download: ML19322C537 (1) | |
Text
RECORD OF TELEPHONE CONVERSATION July 19, 1979 Mr. Bob Burke Senior Vice President -
Regulated Industries Moody's Investors Service, Inc.
(202) 553-0364 (okad gwA)
First Mortgage bcnd ratings now Baagfor Met. Ed, Penelec, and Jersey Central.
(See below for history of rate changes and rating scale.)
Moody's conducts a full scale review every time company has new financing.
However, without files in front of him, difficult to answer questions.
Through 1978 and 1979, before the accident, there was no chance of Met. Ed's bond ratings being upgraded from then A to Aa.
When asked what other than an accident would have caused Moody's to decrease Met. Ed's ratings, Burke reponded that no one single fa: tor would have dropped the rating.
Burke added that Moody's is reluctant to reduce ratings and doesn't like to precipitously reduce ratings.
He felt that the delays in putting TMI-2 in commercial service were not such that would cause a rate reduction and that Met. Ed was in position to absorb some delay.
However, sometimes delays can reduce financial protection measure-ments to point where ratings are reduced. An indefinite deley on TMI-2 would cause Moody's to seriously review Met. Ed's ratings.
Transferring TMI-2 from Construction Work in Progress to Utility Plant is an important part of rating determination.
Purke can't say for sure if delay of one year in securing investment tax credit would cause a change in Moody's ratings.
When asked to send copies of work papers, Burke responded that he could send copies of published reports but domH;tusually release work papers.
mn I asked him to call me back when he had the Met. Ed files available, especially the las: two reviews in 1978 and first review in 1979.
Either he or Peter Jadrosich will call.
R. L. Vandenberg 1
Moody's Bond Ratinas Moody's Pfd. Stock Ratinos Aaa Baa Caa aaa baa caa Aa E- -
Ca aa ba A
B C
a b
8 0 01170M 1
.