The credit analysis agency Fitch Ratings recently upgraded ALP Utilities bond rating on ALP Utilities’ Electric Revenue Bonds from A+ to AA- and their Rating Outlook has been revised to Stable from Positive. The upgrade in ratings allows ALP to hold down costs by borrowing money at lower interest rates. ALP General Manager, Ted Cash welcomed the upgrade, saying, “The ratings upgrade from Fitch is really a testament to the continued hard work by all ALP employees and the Board to strategically focus on the priority of maintaining financial stability and strength. The fact the ALP Utilities continues to be viewed as one of America’s premier Public Power utilities is just another of the many reasons Alexandria is such an outstanding place to live and work.”
The Fitch opinion
In their report, Fitch stated that, “The rating upgrade to AA- from A+ reflects ALP’s very strong financial profile, which continues to be bolstered by the utility’s very low leverage, sound operating cash flow, and robust liquidity metrics. Fitch’s’ analysis of ALP’s leverage also considers the utility’s proportionate share of borrowing at Western Minnesota Municipal Power Agency (WMMPA, AA-/Stable) / Missouri River Energy Services (MRES). ALP’s long-term contracts with Western Area Power Administration (WAPA) and MRES provide the utility with a low-cost and well-diversified power supply.
(The full report can be found here.)