PEC’s AA- rating reflects a very strong financial profile
Fitch Ratings, a nationally recognized credit ratings agency, recently affirmed Pedernales Electric Cooperative’s AA- rating and the following:
PEC’s $39.8 million first mortgage bonds (FMBs) series 2002A at ‘AA-‘;
The co-op’s $200 million private placement commercial paper (CP) program at ‘F1+’;
Additionally, Fitch affirmed PEC’s issuer default rating (IDR) at ‘AA-‘;
And the cooperative’s rating outlook is stable.
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, “PEC has maintained very low leverage through the severe February 2021 winter storm and ensuing ERCOT market disruptions as well as through a more than doubling of global gas prices during 2022, which escalated power costs.”
Access the full news release from Fitch.
