Florida public power utility JEA has received another strong credit rating action, with S&P Global Ratings affirming its ratings for JEA’s Electric Enterprise and Water and Sewer System and revising the outlook on the Water and Sewer System from negative to stable, JEA said on June 18.
S&P said the improved Water and Sewer outlook reflects JEA’s stronger liquidity position, including dedicated credit support for the water and sewer systems.
"This provides additional financial flexibility as JEA continues investing in major infrastructure projects to support reliable service, regulatory requirements, and Northeast Florida’s growth," JEA noted.
The S&P action follows recent rating actions from Moody’s Ratings and Fitch Ratings, which recognized JEA’s financial strength, operational performance, and long-term planning.
"Together, the rating actions from all three major credit rating agencies reflect continued confidence in JEA’s financial management, long-term planning, improved liquidity, and ability to invest responsibly in critical utility infrastructure," the utility said.
“This is another strong signal that JEA is moving in the right direction,” said JEA Managing Director and CEO Vickie Cavey. “Together with the recent actions from Moody’s and Fitch, this recognition reflects confidence in our financial management, long-term planning and ability to responsibly invest in the systems our customers depend on every day.”
Credit ratings help determine how much public utilities pay to borrow money for major infrastructure projects, JEA noted. Strong ratings and stable outlooks can help lower borrowing costs, preserve financial flexibility and support JEA’s ability to invest in its systems while managing costs for customers.
S&P cited several credit strengths for JEA’s Electric Enterprise, including the breadth of the service area economy, revenue stability supported by a large residential customer base, robust projected coverage, and improved access to credit line liquidity.
For the Water and Sewer System, S&P cited JEA’s improved liquidity position, strong debt service coverage, growing and diverse service area economy, rates expected to remain affordable, and robust asset management planning. S&P also noted that JEA’s capital improvement program supports growth, repair and replacement needs, alternative water supply projects and regulatory requirements related to reclaimed water.
Moody’s recently upgraded JEA’s Electric Enterprise to Aa3, returning it to the double-A credit tier, and affirmed the Water and Sewer System at Aa1, citing strong financial performance and continued progress in strengthening governance under a reconstituted board and management team.
Fitch affirmed JEA’s Electric Enterprise at AA and Water and Sewer System at AA+, with stable outlooks for both, recognizing JEA’s financial strength, essential services, customer growth, and continued infrastructure investment.
“S&P’s revised outlook for the Water and Sewer System is an important recognition of the steps JEA has taken to strengthen liquidity and improve financial flexibility,” said JEA Chief Financial Officer Ted Phillips. “Taken together, the actions from S&P, Moody’s and Fitch validate our disciplined financial management and support our ability to fund critical infrastructure responsibly while managing long-term costs for customers.”
