info

Yes No
Global Header | Moody's
ABOUT US
REGULATORY AFFAIRS
CAREERS
Terms of Use
CONTACT US
HOME
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Can't read?
Try a new set
Send Cancel
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
OK
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
OK
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's upgrades NorthWestern Corp. to Baa1; assigns P-2 short-term rating

21 Jan 2011

Approximately $700 million of securities affected

New York, January 21, 2011 -- Moody's Investors Service upgraded the long-term ratings of NorthWestern Corporation (senior unsecured to Baa1 from Baa2); see list below for ratings affected. Moody's also assigned a Prime-2 short term rating to NorthWestern's recently established $250 million 4(2) commercial paper program. NorthWestern's rating outlook is stable.

Upgrades:

..Issuer: Forsyth (City of) MT, Rosebud County

....Senior Secured Revenue Bonds, Upgraded to A2, A2 from A3, A3

....Senior Secured Revenue Bonds, Upgraded to A2, A2 from A3, A3

..Issuer: NorthWestern Corporation

....Senior Secured First Mortgage Bonds, Upgraded to A2 from A3

....Senior Secured First Mortgage Bonds, Upgraded to A2 from A3

....Senior Secured First Mortgage Bonds, Upgraded to A2 from A3

....Senior Unsecured Bank Credit Facility, Upgraded to Baa1 from Baa2

Assignments:

..Issuer: NorthWestern Corporation

....Senior Unsecured Commercial Paper, Assigned P-2

Outlook Actions:

..Issuer: NorthWestern Corporation

....Outlook, Changed To Stable From Positive

RATINGS RATIONALE

"The upgrade of NorthWestern's long-term ratings reflects our expectation that the company's trend of solid financial performance is likely to be sustainable over the medium term and beyond, including financial credit metrics that would be considered strong within the Baa rating category according to our Rating Methodology for Regulated Electric and Gas Utilities, published in August 2009" said Vice President-Senior Analyst, Kevin Rose. The rating upgrades also take into account a satisfactory outcome in NorthWestern's latest general rate case, which resulted in an approximate $6.5 million (3%) electric rate increase and established a four-year pilot revenue decoupling mechanism for most of the company's electric customers. "The outcome in this case is yet another sign of credit supportive treatment by the Montana Public Service Commission (MPSC)" Rose added.

The assignment of the Prime-2 short-term rating reflects NorthWestern's proactive approach to maintaining sufficient internal and external liquidity and the company's sound overall credit quality as evidenced by its Baa1 long-term rating for senior unsecured debt.

Several factors have been contributing to NorthWestern's stronger metrics over the last several years, including debt reduction, refinancing at lower interest rates, and reasonably supportive regulatory treatment in its three regulatory jurisdictions. NorthWestern's cash flow from operations before the effects of working capital changes (CFO Pre-W/C) to interest and debt averaged over 4x and 20%, respectively, over the three fiscal years covering 2007 -- 2009, and stood at 4.2x and 21.4%, respectively, for the 12 months ended September 30, 2010. NorthWestern has also significantly reduced its level of debt as its debt to book capitalization ratio has fallen from approximately 77% in 2004 to approximately 52.2% at September 30, 2010, including Moody's standard adjustments. Management continues to target a range of 50% to 55% debt to book capitalization.

NorthWestern is focused on its utility operations, where it plans to spend about $580 million of maintenance capex over 2011 - 2014, fairly evenly distributed each year. Over this period we note that the utility capex budget will no longer include additional amounts for generation construction related to the 150 megawatt natural gas fired Mill Creek Generation Station, which was placed into commercial operation on January 1, 2011. The MPSC has approved rate base treatment for this plant premised on a 10.25% allowed return on equity and a 50/50 capital structure. Interim rates related to recovery of and return on this investment became effective with commercial operations and a true up of those rates will follow upon completion of a compliance filing to be made by NorthWestern no later than March 31, 2011.

Meanwhile, the pace of progress related to some of NorthWestern's potential growth investment opportunities in regulated electric transmission projects has slowed due to assorted issues including siting delays, economic conditions, and uncertainty about future potential for federal renewable portfolio standards. Nevertheless, NorthWestern's management team remains open to pursuing these projects, which include the potential for three separate transmission projects that could potentially result in growth capex exceeding $1 billion even if the projects are pursued in partnership with others. At this level of spending, NorthWestern would more than double its utility rate base over a multi-year period. Management emphasizes that such investments can be re-sized based on market and economic conditions, and will only be made if market demands make them economically viable and there is reasonable assurance that regulators will provide timely cost recovery and a reasonable opportunity to earn a fair return commensurate with the risk undertaken.

To supplement its cash flow from operations, we expect that NorthWestern will maintain sufficient alternate liquidity for its commercial paper program through a committed three-year $250 million revolving bank credit agreement expiring June 30, 2012 and led by Banc of America Securities LLC. The quality of the alternate liquidity provided by the $250 million facility is generally good, taking into account the multi-year term at its inception, same day availability, no ongoing material adverse change clause, and the absence of onerous financial covenants. Moreover, we anticipate that NorthWestern will begin to address renewal and extension of this facility later this year to ensure completion of the process well ahead of the expiration date.

The stable rating outlook reflects our view that NorthWestern is well positioned to continue producing solid financial results in spite of slowly improving economic conditions to support its Baa1 rating. It also assumes that NorthWestern continues to receive support from state regulators and follows conservative financing of growth initiatives that become economically viable.

NorthWestern's rating can be considered for an upgrade if it continues to receive regulatory support (especially in Montana) and its financial profile strengthens beyond current expectations as it carries out its strategic initiatives; for example, if the company successfully carries out its contemplated growth initiatives while demonstrating an ability to generate CFO Pre-W/C plus interest to interest coverage and CFO Pre-W/C to debt in the mid 4x range and near 25%, respectively, on a sustainable basis.

A downgrade of NorthWestern's ratings is unlikely in the near to intermediate term given the expected level of financial performance. However, an unexpected shift away from the current primary focus on regulated electric and gas utility operations that involves higher business risk without a commensurate improvement in financial ratios could lead to a downgrade. Also, if NorthWestern unexpectedly implements a more shareholder-friendly dividend policy or uses a significant amount of debt to finance various utility-related growth opportunities, then these strategies could cause us to take a negative rating or outlook action. Specifically with respect to credit metrics, if NorthWestern's future financial performance causes CFO Pre-W/C plus interest to interest coverage and CFO Pre-W/C to debt to fall below 4x and 20%, respectively, for an extended period, then a negative action could result.

The principal methodology used in this rating was Regulated Electric and Gas Utilities published in August 2009.

NorthWestern Corporation, headquartered in Sioux Falls, South Dakota, conducts regulated electric and gas utility operations in Montana, South Dakota, and Nebraska through its NorthWestern Energy division.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, confidential and proprietary Moody's Investors Service information, and confidential and proprietary Moody's Analytics information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating.

Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

New York
Kevin G. Rose
Vice President - Senior Analyst
Infrastructure Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
William L. Hess
MD - Utilities
Infrastructure Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's Investors Service
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's upgrades NorthWestern Corp. to Baa1; assigns P-2 short-term rating
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.
​
Global Footer | Moody's