Bangkok--11 May--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'A+' rating to Turlock Irrigation District (TID), Calif.'s $156 million series 2010A revenue refunding bonds and to Walnut Energy Center Authority (WECA), Calif.'s $84 million series 2010A revenue refunding bonds and $55 million series 2010B taxable revenue refunding bonds. At the same time, Standard & Poor's affirmed its 'A+' rating on Tuolumne Wind Project Authority (TWPA), Calif.'s series 2009A refunding bonds (Tuolumne Company Project), based on our view of TID's unconditional, take-or-pay obligation to make debt service payments on the bonds. Standard & Poor's also affirmed its 'A+' senior-lien and 'A' junior-lien ratings and underlying ratings (SPURs) on TID's outstanding revenue bonds and certificates of participation, and its 'A+' SPUR on WECA's outstanding series 2004 bonds, based on our view of TID's obligation to make payments sufficient to cover debt service. The outlook is stable.
"The ratings on the series 2010 bonds are based on TID's strong liquidity; willingness to adjust rates; and its power supply adjustment billing factor, which allows the district to control for power supply cost volatility," said Standard & Poor's credit analyst Paul Dyson.
We understand that TID's bonds are being issued to refund various outstanding notes and bonds, while WECA's bonds are being issued to refund various outstanding notes and a portion of outstanding commercial paper.
TID is located in Turlock, in Northern California's Central Valley, which is in Stanislaus County along Highway 99. As of 2009, the district's power mix consisted mostly of owned generation (61.6% of total energy), which includes the newly built 250 MW Walnut Energy Center (43.5% of resources) and the 137 MW Tuolumne Wind Project (7.3%), as well as existing gas-fired (1.7%) and small hydro (9.0%) projects, long-term purchased power contracts (16.6%), and short-term purchases (21.8%). Overall, 62% represented owned generation, with 38% representing purchased power.
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
Ian Carroll, San Francisco (1) 415-371-5060