| Posted in: News Releases
Fitch Ratings (Fitch), a national rating service company, recently affirmed the rating of Western Minnesota Municipal Power Agency’s (WMMPA) power supply revenue and refunding bonds at AA- with a stable outlook.
WMMPA’s outstanding power supply revenue bonds are secured by revenues it receives through an agreement with Missouri River Energy Services (MRES), a joint-action agency serving 61 municipal electric systems in Iowa, Minnesota, North Dakota and South Dakota. Through the agreement, WMMPA provides financing for and is the owner of electric generation, transmission and other facilities used by MRES to serve its members.
Fitch’s rating recognized WMMPA’s history of sound financial policies, which have resulted in consistent strong liquidity and debt service coverage, the diversity and overall credit quality of the 61 utility system members, and strong margins. The rating also considered WMMPA’s strong operating risk profile based on resource diversity, access to organized power markets, and other lower-cost assets and resources.
“We are pleased with the outcome of Fitch’s independent review,” said MRES Vice President and CFO Chris Olson. “Our strong financial position and policies, our diverse membership and their financial strength, along with the reputation of WMMPA, MRES, and our members continue to play a key role in maintaining the strong credit rating of WMMPA.”