Moody’s Investors Service affirmed the Western Minnesota Municipal Power Agency’s A1 rating and revised its outlook to positive from stable ahead of a $140 million new-money and refunding sale to finance its share of transmission expansion projects.
The deal includes $98 million of Build America Bonds, $33 million of taxable refunding bonds, and $10 million of tax-exempt bonds.
The rating is supported by the power agency’s low-cost power, the financial flexibility afforded by its ample liquidity, stable financial operations with sound debt-service coverage levels, and the average credit quality and competitive retail rates of its diverse customer base. The agency has 24 municipal members.
The outlook change is due to the agency’s consistently sound financial position, risk management strengths, and moderating capital requirements.
The new money will finance the agency’s share of Cap X 2020 Fargo Phase One and Cap X 2020 Fargo Phase 2 transmission expansion projects and capital additions to the Laramie River Station.
