New York, November 10, 2022 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings -and other ratings that are associated with the same analytical units for the rated entity(entities) listed below.
The review was conducted through a portfolio review discussion held on 3 November 2022 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. A possible outcome from periodic reviews is a referral of a rating to a rating committee.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
Key Rating Considerations
The principal methodology used for the rated entities listed below was US Public Power Electric Utilities with Generation Ownership Exposure Methodology published in August 2019. Please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.
Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.
US Public Power Electric Utilities with Generation Ownership Exposure Methodology
Revenue Generation and Recovery Cost Framework: Metrics may include but are not limited to monopoly status; rate setting flexibility; strength of customer base and service area as measured by resource base, population, wealth, economic diversity, and growth projections; length and quality of customer contracts and contractor credit quality; scale; market framework and market diversification; structural and creditor protections; and ownership model.
Cost Recovery: Metrics may include but are not limited to transparency and timeliness of rate setting process by governing board or regulatory body including support for setting appropriate rates and charges to service debt; exposure to potential rate shocks; cash flow predictability.
Generation and Procurement Risk: Metrics may include but is not limited to ability to meet power supply commitments; the fuel mix; power price hedging; diversity, cost and reliability of power supply sources; exposure to additional debt needs or regulatory risk; scale and complexity of the capex programme.
Competitiveness: Metrics may include but are not limited to market position, average system retail rate relative to regional peers or state average and material cost pressure that could lead to higher rates.
Financial Position, Policy and Ownership: Metrics may include but are not limited to corporate financial policy, days cash on hand; debt service coverage ratio measured by debt service and other fixed charges by net revenue, adjusted debt ratio of debt and ANPL (adjusted net pension liability) to net assets and working capital; ratio of debt to cash flow; interest coverage metrics and debt to asset metrics. Assessments may include but are not limited to an Issuer's desired capital structure / credit profile, and its adherence to its commitments and our views on the ability of the company to achieve its targets, an assessment of the likelihood and potential negative impact of M&A or other types of balance-sheet-transforming events, and the likelihood of uncontracted financial support being provided by owners; and the protective terms of debt documentation including but limited to restrictions on business activities, use of debt and revenue distributions; and control and liquidity afforded to creditors.
- Anaheim (City of) CA Electric Enterprise
- Arizona Power Authority
- Austin (City of) TX Electric Enterprise
- Bonneville Power Administration, OR
- Brownsville Public Utilities Board, TX
- Burbank (City of) CA Combined Utility Ent.
- Burlington (City of) VT Electric Enterprise
- Chelan County Public Util. Dist 1, WA
- Clark County Public Utility District 1, WA
- Clatskanie People's Utility District, OR
- Cleveland Public Power, OH
- Colorado Springs (City of) CO Comb. Util Ent.
- Dalton (City of) GA Combined Utility Ent.
- Douglas County Public Utility District 1, WA
- Fayetteville Public Works Commission, NC
- Gainesville (City of) FL Combined Util. Ent.
- Garland (City of) TX Electric Enterprise
- Glendale (City of) CA Electric Enterprise
- Grand Island (City of) NE Combined Utilities
- Grand River Dam Authority, OK
- Grant County Public Utility District 2, WA
- Green Island Power Authority, NY
- Guam Power Authority
- Hamilton (City of) OH Electric Enterprise
- Henderson Municipal Power & Light, KY
- Holyoke Gas and Electric Department, MA
- Imperial Irrigation District, CA Elec. Ent.
- JEA, FL - Electric Enterprise
- Key West Utility Board, FL
- Klickitat County Public Utility Dist. 1, WA
- Lafayette (City of) LA Combined Util. Ent.
- Lakeland (City of) FL Electric Enterprise
- Lansing Board of Water & Light, MI
- Lodi (City of) CA Electric Enterprise
- Long Island Power Authority
- Los Angeles Department of Water & Power, CA Power System
- Lower Colorado River Authority, TX
- Memphis (City of) TN Electric Enterprise
- Modesto Irrigation District, CA
- Monroe (City of) GA Combined Utility Ent.
- Monroe (City of) NC Combined Utility Ent.
- Nebraska Public Power District
- New York State Power Authority
- Omaha Public Power District, NE
- Orlando Utilities Commission, FL
- Owensboro (City of) KY Electric Enterprise
- Paducah (City of) KY Electric Enterprise
- Pend Oreille County P.U.D. 1, WA
- Princeton Electric Plant Board, KY
- Rochester (City of) MN Electric Enterprise
- Rock Hill (City of) SC Combined Utility Ent.
- Roseville (City of) CA Electric Enterprise
- Sacramento Municipal Utility District, CA
- Salt River Proj. Agric. Imp. & Pwr. Dist. AZ
- San Antonio (City of) TX Combined Util. Ent.
- Seattle (City of) WA Electric Enterprise
- Snohomish County P.U.D. 1, WA Electric Ent.
- South Carolina Public Service Authority
- Springfield (City of) IL Electric Enterprise
- Tacoma Power, WA
- Tallahassee (City of) FL Electric Enterprise
- Turlock Irrigation District, CA
- Unified Govt of Wyandotte Co/KS Cty BPU
- Vernon (City of) CA Electric Enterprise
- Virgin Islands Water & Power Authority
- Walnut Energy Center Authority, CA
The principal methodology used for the rated entities listed below was US Municipal Utility Revenue Debt Methodology published in April 2022. Please see the Rating Methodologies page on
https://ratings.moodys.com for a copy of this methodology.
Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.
US Municipal Utility Revenue Debt Methodology
Revenue Base Characteristics: Metrics may include but are not limited to tax base size measured by per capital income relative to US average; GDP growth; full value; median family income and/or size of operating and maintenance budget; nature of pledge supporting repayment.
Market Position: Metrics may include but are not limited to revenue predictability and stability; service area or system size; asset condition; utilization; legal ability to match revenues and spending.
Financial Position: Metrics may include but are not limited to debt service coverage; absolute fund balance and cash position; budget flexibility; revenue trends; relationship between inflows and outflows.
Debt Affordability: Metrics may include but are not limited to leverage as defined by debt to long term liabilities or spendable cash and investments to debt, leverage to revenues; ability to issue additional debt on the same revenue base; any debt service reserve funds and requirement; fixed costs compared to own source revenues.
- Citizens Energy Group, IN
- CWA Authority, Inc., IN
- Indianapolis (City of) IN Gas Enterprise
- Long Beach (City of) CA Gas Enterprise
- Philadelphia (City of) PA Gas Works
- Southeast Alabama Gas District
- Texas Municipal Power Agency
- York County Natural Gas Authority, SC
The principal methodology used for the rated entities listed below was Regulated Electric and Gas Networks published in April 2022. Please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology.
Key rating considerations on a forward-looking basis may include but are not limited to the following summarized below.
Regulated Electric and Gas Networks
Revenue Generation and Recovery Cost Framework: Metrics may include but are not limited to monopoly status; rate setting flexibility; strength of customer base and service area as measured by resource base, population, wealth, economic diversity, and growth projections; length and quality of customer contracts and contractor credit quality; scale; market framework and market diversification; structural and creditor protections; and ownership model.
Cost Recovery: Metrics may include but are not limited to transparency and timeliness of rate setting process by governing board or regulatory body including support for setting appropriate rates and charges to service debt; exposure to potential rate shocks; cash flow predictability.
Generation and Procurement Risk: Metrics may include but is not limited to ability to meet power supply commitments; the fuel mix; power price hedging; the diversity, cost and reliability of power supply sources; exposure to additional debt needs or regulatory risk; scale and complexity of the capex programme.
Competitiveness: Metrics may include but are not limited to market position, average system retail rate relative to regional peers or state average and material cost pressure that could lead to higher rates.
Financial Position, Policy and Ownership: Metrics may include but are not limited to corporate financial policy, days cash on hand; debt service coverage ratio measured by debt service and other fixed charges by net revenue, adjusted debt ratio of debt and ANPL (adjusted net pension liability) to net assets and working capital; ratio of debt to cash flow; interest coverage metrics and debt to asset metrics. Assessments may include but are not limited to an Issuer's desired capital structure / credit profile, and its adherence to its commitments and our views on the ability of the company to achieve its targets, an assessment of the likelihood and potential negative impact of M&A or other types of balance-sheet-transforming events, and the likelihood of uncontracted financial support being provided by owners; and the protective terms of debt documentation including but limited to restrictions on business activities, use of debt and revenue distributions; and control and liquidity afforded to creditors.
- SFP Transmission, NY
This announcement applies only to Rated Entities with EU rated, UK rated, EU endorsed and UK endorsed ratings. Rated Entities, with Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced herein to the extent necessary, if they are part of the same analytical unit.
Please see the Issuer page on https://ratings.moodys.com for each of the ratings covered, most updated credit rating action, rating history, and Credit Rating action Press Release including the rating rationale and factors that could lead to a rating upgrade or downgrade.
This publication does not announce a credit rating action.
For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com
for the most updated credit rating action information and rating history.
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