S&P Global Ratings and Moody’s recently reaffirmed the strong credit ratings for Colorado Springs Utilities.
“Many of our capital projects in our Five-Year Financial Plan will be funded through bonds, making this a positive development because a favorable ‘credit score’ allows us to keep borrowing costs low, which supports competitive rates,” the public power utility noted.
Standard & Poor’s rating is AA+ and Moody’s is Aa2. “These ratings are high for the utility industry and highlight our strong financial position. Each rating agency also provides comments about the outlook. A stable outlook indicates a low likelihood of a rating change,” Colorado Springs Utilities noted.
“The ratings are supported by Springs Utilities’ demonstrated operational and financial resilience in the face of rising – and occasionally unpredictable – costs across its four utilities,” stated S&P Global Ratings credit analyst Doug Snider in his report.
He continued, “This is highlighted, in our view, by its track record of maintaining robust liquidity and fixed-charge coverage thanks to its dynamic and proactive rate-setting practices, strong operational performance, and high system reliability across its component utilities, even through extreme weather events.”
The above-average rating “is a testimony to how our employees and the Utilities Board embrace anticipatory planning and programs that help maintain the financial health of the organization and manage customer costs,” the utility said in a July 30 post.
