Standard & Poor’s (S&P) and Moody’s Investor Service recently affirmed their ratings for Washington state-based Mason PUD 3.
“The endorsement led to an impressive bond sale in late January to refinance PUD 3 debt and create long-term savings for the utility,” Mason PUD said on Feb. 18.
With interest rates at historically low levels, PUD 3 refinanced its 2010B (Build America) Bonds resulting in present value savings of $10.4 million or 18.5% of the refunded bonds. “Given the low-interest-rate environment, it was advantageous for the district to borrow new money to finance capital improvements with minimal impact on annual debt-service payments,” the PUD said.
S&P recently affirmed PUD 3’s A+ bond rating, while Moody’s Investor Service maintained the PUD’s rating as AA3.
“High ratings from Standard and Poor’s, and Moody’s Investor Service – along with good timing – attracted a broad range of investors to our bond sale,” said Annette Creekpaum, Mason PUD 3 manager. “PUD 3 bonds are strong investments. We work hard for consistently strong financial performance and the maintenance of very low debt.”
PUD 3 has won 14 straight Government Finance Officers Association awards of excellence for its annual reports and has experienced over 38 consecutive years of excellent audits from the Washington State Auditor’s Office.
Also, the PUD is a diamond-level Reliable Public Power Provider (RP3) in Washington State, as designated by the American Public Power Association. The PUD has also been designated a “Smart Energy Provider” by the Association.
Mason PUD 3 has about 600 square miles of service territory, with nearly 34,000 electricity customers. PUD 3 also operates a wholesale fiber optic telecommunications network, which supports the operation of its electric distribution services.