| Posted in: News Releases
Moody’s Investors Service (Moody’s), a national rating services company, recently affirmed the Aa2 rating with a stable outlook for Western Minnesota Municipal Power Agency’s (WMMPA) power supply revenue and refunding bonds.
WMMPA’s outstanding power supply revenue bonds are secured by revenues it receives through an agreement with MRES. 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.
Moody’s Aa2 rating recognizes WMMPA’s long-standing commitment to sound financial policies, which have resulted in consistent strong liquidity and fixed obligation charge coverage. The diversity and overall credit quality provided by the 61 members, who have an estimated average overall electric system rating quality in the “A” rating category, is a key component of WMMPA’s credit profile. Moody’s also noted WMMPA’s diversified and cost-competitive generation mix.
“We are pleased with the outcome of Moody’s independent review,” said MRES Vice President and CFO Chris Olson. “WMMPA’s strong credit rating is the result of prudent financial policies, disciplined risk management and the financial strength of our members.”
For more information, contact MRES Vice President of Member Services and Communications Tim Blodgett at 605-338-4042 or info@mrenergy.com.