Standard & Poor's Ratings Services has revised its outlook on Gainesville, Fla.'s system revenue bonds issued for Gainesville Regional Utilities (GRU) to negative from stable. At the same time, Standard & Poor's assigned its 'AA' rating to Gainesville's utilities system revenue bonds, 2012 series A, issued for the system. Standard & Poor's also affirmed its 'AA' long-term rating on the system revenue bonds issued for GRU and its 'A-1+' short-term rating on the utility's commercial paper program.
"The negative outlook reflects our view of the potentially weaker financial metrics if GRU is unable to sell a 25% share of its biomass plant, which could result in a lower rating," said Standard & Poor's credit analyst Judith Waite.
