The City of Independence recently received word from Standard and Poors that it had had affirmed its “A” long-term and underlying ratings for the City’s infrastructure leasehold revenue bonds, issued by the Missouri Development Finance Board which supports the City’s electric system.
Using their criteria for all U.S. Municipal Retail utilities, the “A” rating reflects S&P’s opinion of the combined utility’s strong enterprise and financial risk profiles. Specifically cited by S&P in their report for the “A” rating was the “stable residential customer base, high but declining rates, and diverse mix of owned generation capacity and purchased power.“ Among the areas that IPL was cited as Strong or Very Strong in the report are: The assessment of operational management of the system; the level of debt covered by the level of revenues, the liquidity and reserves and the level of outstanding debt and liabilities for the size of the utility.
“We have been focused on the financial sustainability of our utilities over the last two years and continue to evaluate important decisions for the future of our Power, Water and Water Pollution Control services here in the City,” Independence Mayor Eileen Weir said. “Ongoing positive ratings from agencies like S&P show we are moving in the right direction.”
S&P further stated that the outlook for the reviewed bonds looks stable. A complete summary of the S&P report can be found here.