Standard and Poor’s (S&P) Global Ratings and Moody’s recently issued updated credit reports for Basin Electric reaffirming its A rating and stable outlook and its A3 rating and positive outlook, respectively.
S&P’s assessment of the cooperative’s creditworthiness considers existing long- and short-term debt and projected debt balances issued by the utility for its own capital needs and for those of its nonutility subsidiaries. To support the rating, S&P noted Basin Electric’s robust debt service coverage metrics, ample liquidity, and the breadth of the utility’s customer base.
Moody’s credit opinion reflects Basin Electric’s continued strong operating and financial performance at its core generating and transmission business, and strong overall liquidity offset by credit risks associated with its very large non-utility gasification business.
“The ratings are used by lenders, investors, and other counterparties to support their decisions on whether to lend money to or do business with Basin Electric,” said Sarah Scherm, Basin Electric vice president and treasurer. “An A rating signifies a strong, investment grade credit rating, and allows us to borrow funds at lower interest rates and to do business with others without having to post collateral (such as cash).”
Basin Electric is consistently one of the top-rated generation and transmission cooperatives with A ratings and is committed to maintaining its creditworthiness and the trust of its membership and all financial stakeholders.
