On Oct. 24, 2002, Standard&Poor's Ratings Services assigned its 'BB+' rating to the second mortgage bonds securing Tucson Electric Power Co.'s new $400 million bank facility that will replace the $441 million facility expiring on Dec. 31, 2002. The outlook is stable. The Tucson, Ariz.-based electric utility has about $1.4 billion in outstanding debt. The rating is one notch higher than the 'BB' corporate credit rating and one notch below the 'BBB-' rating on the first mortgage bonds. The notching up from the corporate credit rating reflects the over-collateralization of the maximum amount of second mortgage bonds that could be outstanding under the terms of the bank facilities by the company's pledged assets. The bank facilities provide liquidity
