This week S&P Global Ratings (Standard & Poor’s) and Moody’s have reaffirmed our strong credit ratings. This benefits our customers because our favorable “credit score” allows us to keep borrowing costs low, resulting in competitive rates.
Our rating with Moody’s is Aa2, and our S&P Global Ratings is AA+. These ratings are high for the utility industry and highlight our strong financial position.
Each rating agency also provides comments on the outlook. A stable outlook indicates a low likelihood of a rating change. A negative outlook indicates possibility of a downward rating. Moody’s outlook is stable, and highlights our ability to manage capital projects while maintaining high financial metrics in a stable regional economy. S&P’s outlook similarly highlighted our ability to be agile and proactive in rate setting while maintaining “exceptionally strong” financial metrics.
S&P’s outlook changed from stable to “negative” this year due to increased focus on the industry’s exposure to fuel and energy prices. We do not anticipate this outlook comment from S&P will have a material impact on our borrowing costs.
We are confident in our plans to control costs by making wise business decisions, such as gas hedging practices. This allows us to lock-in future energy costs at favorable rates.
We also have tools to manage fuel prices such as access to natural gas storage, a gas propane air plant and gas purchasing at first of month fixed pricing.
These above-average ratings are a testimony to the dedication our staff, Utilities Board and City Council place on the financial health of the organization.
