SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 5, 1994
CENTRAL MAINE POWER COMPANY
(Exact name of registrant as specified in its charter)
Maine 1-5139 01-0042740
(State of Incorporation) (Commission (IRS Employer
File Number) Identification Number)
Edison Drive, Augusta, Maine 04336
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (207) 623-3521
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Item 1 through Item 4. Not applicable.
Item 5. Other Events.
On January 5, 1994, Standard & Poor's Corp. ("S&P") removed the
Company's ratings from "CreditWatch" and lowered them as
follows: senior secured debt to "BB+" from "BBB-"; senior
unsecured debt to "BB-" from "BB+"; preferred stock to "B+"
from "BB"; and commercial paper to "B" from "A-3". In
addition, S&P assigned its preliminary "BB+" senior secured
debt rating to the Company's $150 million General and Refunding
Mortgage Bonds recently registered with the Securities and
Exchange Commission as a "shelf" registration pursuant to Rule
415 under the Securities Act of 1933.
S&P explained that the "downgrade reflects expectations of
continued poor financial performance that will not allow the
financial profile, adjusted for purchased power, to remain
acceptable for the current ratings for a utility with a below-
average business position. Despite aggressive and anticipated
cost reductions on both capital and operating expenses, a lower
dividend, and an approach to reduce high-cost nonutility power,
financial pressures will persist over the intermediate term.
Other management challenges include a depressed Maine economy,
a large industrial customer base demanding lower rates,
increasing competitive pressures, significant purchased-power
obligations, excess high-cost capacity, and nuclear
concentration risk."
S&P further stated that the Company's "ability to materially
reduce the annual $350 million cost associated with nonutility
power will be difficult. Despite the cost reductions, the
utility will unlikely earn its authorized return for the next
several years. Furthermore, a weak economy will pressure
sales, and inability to secure reasonable future rate relief
will dampen financial improvement."
Item 6 through Item 8. Not applicable.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
CENTRAL MAINE POWER COMPANY
By
David E. Marsh
Senior Vice President, Finance,
and Chief Financial Officer
Dated: January 7, 1994
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