Fitch Ratings and Moody’s Investor Services have upgraded their bond ratings for the Minnesota Municipal Power Agency, MMPA said on Sept. 17.
Fitch upgraded MMPA’s bond rating from “A” to “A+.” In its rating commentary, Fitch cited MMPA’s strong financial performance, effective management and competitive rates in upgrading its rating of MMPA.
Moody’s upgraded MMPA’s bond rating from “A2” to “A1.” This upgrade represents the second time in four years that Moody’s has upgraded MMPA’s bond rating, MMPA noted.
Contributing to the ratings upgrades was MMPA’s retirement of more than $32 million of debt in 2017, including the prepayment of $22 million of its Series 2007 bonds. By extinguishing this debt, MMPA avoided paying nearly $13 million in interest expense over the next twenty years, resulting in lower rates to members.
MMPA provides wholesale electricity to its member communities, which in turn deliver and sell that electricity to residential and business customers in their communities.
Members include municipal utilities in Anoka, Arlington, Brownton, Buffalo, Chaska, East Grand Forks, Elk River, Le Sueur, North St. Paul, Olivia, Shakopee and Winthrop.