The Western Minnesota Municipal Power Agency (WMMPA) was recently upgraded to a rating of Aa2 from Aa3 with a stable outlook by Moody’s Investors Service.
At the same time, Fitch Ratings reaffirmed its AA- rating with a stable outlook on WMMPA’s power supply revenue bonds.
WMMPA’s outstanding power supply revenue bonds are secured by revenues it receives through an agreement with Missouri River Energy Services (MRES), a joint action agency serving 61 municipal electric systems in Iowa, Minnesota, North Dakota and South Dakota.
Through the agreement, WMMPA provides financing for and is the owner of electric generation, transmission and other facilities used by MRES to serve its members.
Moody’s upgraded rating recognized WMMPA’s history of sound financial policies, which have resulted in consistent strong liquidity and debt service coverage, the diversity and overall credit quality of the 61 utility system members, and conservative financial policies.
The rating also considered the steps taken to ensure future capacity and improve resource diversity, including completing the Red Rock Hydroelectric Project on the Des Moines River near Pella, Iowa, an MRES member community.