Fitch affirms PEC’s AA- rating, outlook revised to stable
Co-op shows strong revenue defensibility
Fitch Ratings, a nationally recognized credit ratings agency, recently affirmed Pedernales Electric Cooperative’s (PEC’s) AA- rating and the following:
- PEC’s $44.9 million first mortgage bonds series 2002A at ‘AA-‘
- The co-op’s $200 million private placement commercial paper program at ‘F1+’
- PEC’s issuer default rating at ‘AA-‘
- Revised outlook to stable from negative
According to Fitch, PEC’s rating outlook improved to stable because remaining ERCOT market and litigation risks from the February 2021 winter storm are unlikely to pressure the utility’s ‘AA-‘ rating.
Regarding the announcement, Randy Kruger, PEC chief financial officer said, “Fitch’s AA- rating is a testament to PEC’s strong balance sheet and solid financial position. We continuously strive to keep members’ rates down through low-borrowing costs.”
In a news release Fitch said, “Affirming PEC’s debt ratings at ‘AA-‘ reflects very strong revenue defensibility and a very low operating cost burden driven by the cooperative’s economic power supply, including its all-requirements wholesale power agreement with the Lower Colorado River Authority (LCRA; AA-/Stable).”
Access the full news release here.