Fitch drops Sam Rayburn debt to junk, fretting that excess power won't be sold. (Sam Rayburn Municipal Power Agency of Texas)

The Bond Buyer | November 29, 1994| | Copyright

DALLAS -- Fitch Investors Service yesterday downgraded $230 million in revenue bonds for the Sam Rayburn Municipal Power Agency in Texas to BB, or junk status, from BBB-minus.

The move comes nine months after a similar action by Standard & Poor's Corp., which lowered the bond rating to BB from BBB, and reflects growing concern over the power agency's failure to sell surplus electricity.

"We are not certain they will be able to sell the excess power because pricing is coming down and the industry is becoming more competitive," said Alan Spen, a managing ...

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