Currently, the most restrictive dividend limitation
is from a February 2006 PUCN financing order that restricts the combined dividends from NPC and SPPC to the amount of SRP's debt service.
In addition, we have eliminated the potential dividend limitation
that might otherwise have applied beginning in 2004.
The most restrictive dividend limitation
currently is from a February 2006 PUCN financing order that restricts the combined dividends from NPC and SPPC to the amount of SRP's debt service.
Fitch IBCA believes that GATX Capital's capitalization will remain solid in future periods due to management's operating philosophy, as well as dividend limitation
and minimum net worth covenants in its committed bank revolver.
These actions are believed necessary and appropriate to conserve capital due to changing regulatory requirements and the Company's Dividend Limitation
Agreement with the OTS.
Specifically, any declaration of future cash dividends will depend upon a number of factors, including the Bank's future earnings, financial condition, cash needs, general business conditions and dividend limitations
imposed by law.
Somewhat constraining the parent company's financial flexibility are operating company dividend limitations
in Wisconsin, which are more restrictive than in other states.
Customary covenants apply to the term loan, including maximum total leverage, interest coverage, capital expenditure limits, stock repurchase and dividend limitations
and standard restrictions on investments and mergers and acquisitions.
Fitch believes that maintaining assets at the holding company is prudent given the restrictive dividend limitations
for insurance companies.
Fitch believes that maintaining assets at the holding company is prudent given the more restrictive dividend limitations
for New York-domiciled companies.
With respect to such dividend limitations
, the capital plan contemplates payment of cash dividends on the new preferred stock that would be issued in the proposed recapitalization.
Accordingly, the group has agreed to adhere to certain additional reporting requirements and to dividend limitations
and has filed a plan with the Texas Department of Insurance.