Moody's Investors Service on Monday upgraded the Guam Power Authority's senior revenue bonds to investment grade.
The rating agency upgraded the senior-lien revenue bonds to Baa3 from Ba1 and the subordinate bonds to Ba1 from Ba2. All of the bonds have stable outlooks.
The authority is expected to sell $370 million of senior revenue bonds early next month.
"The rating of GPA's revenue bonds reflects its dominant market position," the report said. "The rating upgrade reflects improved financial performance, as measured by debt-service coverage levels and liquidity held in the form of days of cash on hand."
Moody's said the ratings move was also a result of a new multi-year rate increases and a new long-term power supply contract with the U.S. Navy, its largest customer.
