Standard & Poor's Ratings Services said it raised its underlying rating (SPUR) on Bessemer, Ala.'s electric revenue debt to A from A-minus.
The outlook is stable.
"The upgrade reflects our opinion of the electric system's good financial performance," said Standard & Poor's credit analyst Scott Sagen, "as evidenced by its improved liquidity position and the maintenance of adequate fixed-charge debt service coverage that we believe sustainable, given the system's lack of additional debt plans."
"In our view, the rating also reflects the electric system's diverse and primarily residential electric customer base and low debt burden," he added. Another factor is its role as a distributor of Tennessee Valley Authority (TVA) power and energy, which greatly reduces operating and financial risk to Bessemer.
