MINNESOTA POWER <MPL> DEBT DOWNGRADED BY MOODY'S
Moody's Investors Service Inc said it
lowered Minnesota Power and Light Co's 490 mln dlrs of debt.
    Cut were the company's first mortgage bonds and pollution
control revenue bonds to A-2 from Aa-3, unsecured pollution
control and industrial revenue bonds to A-3 from A-1 and
preferred stock to A-2 from Aa-3.
    Moody's expects Minnesota Power's earnings, returns,
coverage ratios and cash flow measures to decline substantially
during the next few years. It cited tax reform, weaker
performance by the utility's securities investment program and
initial losses for non-utility business.
 Reuter
