Bangkok--29 Oct--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'A+' long-term rating to the City of Bountiful, Utah's $16.5 million series 2010 electric revenue bonds (Federally Taxable-Issuer Subsidy-Recovery Zone Bonds).
"Credit strengths supporting the rating include the electric system's stable customer base and predictable and manageable resource requirements, the city's demonstrated ability and willingness to make rate adjustments, low debt burden, very strong projected debt service coverage, and strong and improved liquidity," said Standard & Poor's credit analyst Paul Dyson.
Proceeds from the series 2010 bonds will finance the installation of two new gas turbines for a total 25-megawatt (MW) expansion of the system. The all-in cost of the project is $24.5 million, with the city's general fund contributing $10 million.
The city (population 43,903) established the electric (light and power) system in 1935, and the system now serves 16,485 customers (of whom 15,177, or 92%, are residential). The system serves a 14-square-mile area coterminous with the city, about 8 miles north of Salt Lake City.
The stable outlook reflects the city's demonstrated ability and willingness to adjust rates, its forecast for continued very strong coverage ratios, and its strong liquidity. The stability of the customer base and the city's favorable location and resource portfolio also support the stable outlook.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Electric Utility Ratings, June 15, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Judith Waite, New York (1) 212-438-7677