Huntsville Utilities News
Huntsville Utilities Electric System Secures High Ratings from Moody’s and Standard & Poor’sNovember 4th, 2011
Standard & Poor’s Rating Services and Moody’s Investors Service assigned the Huntsville Utilities Electric System high ratings this week. S & P awarded Huntsville a rating of “AA+” and Moody’s Investors Service awarded a rating of “Aa1.”
“These are very good ratings for the public utility sector and it means we can acquire the needed funds to finance construction projects to meet the energy needs of all the communities Huntsville Utilities serves,” stated Bill Pippin, President/CEO of Huntsville Utilities. “I am very proud of the employees and management in their work that allows us to receive this high rating,” Pippin added.
S & P cited Huntsville Utilities’ strong and stable financial performance, a strong and diverse regional economy and a manageable five-year capital improvement program in assigning the AA+ rating. S & P also affirmed its AA+/Stable rating on the utility’s long-term system debt outstanding.
Moody’s assigned a Aa1 rating on the utility’s Revenue Warrants. Moody’s cited a solid financial position, healthy debt service coverage and a diverse service area as strengths to support their rating. Moody’s also affirmed an Aa1 rating to the system’s outstanding debt.
Both rating agencies noted Huntsville Utilities’ strong relationship with its power supplier, the Tennessee Valley Authority (TVA), and noted Huntsville’s ability to maintain both low rates and system stability. Both agencies noted that the financial outlook for the utility was stable.
Huntsville Utilities is a publicly owned not-for-profit utility providing electric service to approximately 170,000 customers in Huntsville, Madison County and northern Marshall County, Alabama.