Utility Revised to Positive

Standard & Poor’s has affirmed the AA-minus assigned to Columbia’s water and electric system revenue bonds while revising the outlook to positive from stable due to Columbia Water and Light’s improved financial position.

“The outlook revision is based on our expectation that CW&L’s improved financial metrics, including consistently solid debt-service coverage and strong working capital, should be sustainable as the utility fully integrates new generating assets into its purchased power supply portfolio,” said analyst Theodore Chapman.

The municipal utility is working to fully integrate the fixed costs from three new coal-fired baseload generation units. Standard & Poor’s analysts said they could raise the system by one notch if its financial performance remains on track.

The rating is further supported by an economically stable and diverse service territory, with higher education and regional health care anchoring the employment base. The system has a modest five-year capital improvement program, with $59 million in electric system projects and $11.4 million in water projects through fiscal 2016.

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