Bangkok--24 Dec--Standard & Poor's
Standard & Poor's Ratings Services raised its rating and underlying rating to 'AA-' from 'A+' on Grant County Public Utility District No. 2 (Grant PUD), Wash.'s electric system revenue bonds. The outlook is stable.
"The raised rating reflects the electric system's strengthened financial performance, including very strong coverage of both debt service and fixed charges, and very strong liquidity," said Standard & Poor's credit analyst Paul Dyson.
The district's financial performance has strengthened further in 2006 and 2007, as it did in fiscals 2003-2005 following weak performance in 2001-2002. In fiscal 2007, direct debt service coverage was an extremely strong 6.5x (or 3.8x when removing $48 million transferred to the district's rate stabilization fund, or RSF), up from 1.7x and 1.7x, respectively, in 2005. Coverage of fixed charges, which measures coverage of both debt service and minimum purchase power payments, was a likewise strong 1.7x in 2007 (or 2.4x without the RSF transfer), also improved over 1.2x and 1.2x, respectively, in 2005. All of these coverage figures adjust for the amortization of power cost deferrals, which were fully amortized after 2006.
Liquidity has improved dramatically as of Dec. 31, 2007, consisting of an estimated $94 million in unreserved cash (up from $61 million in 2005), with the district maintaining its $92 million in board-restricted reserves (up from $17 million in 2005), combining for 533 days' cash operating expenditures.
Grant County PUD is a vertically integrated public utility located in central Washington.
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Media Contact:
Edward Sweeney, New York (1) 212-438-6643, [email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Ian Carroll, San Francisco (1) 415-371-5060