Fitch Ratings said it has upgraded Berkshire Wind Power Cooperative Corporation's (BWPCC, or the cooperative) $57.9 million of outstanding wind project revenue bonds, Berkshire series 1 to A-plus from A.
The rating outlook is stable.
BWPCC revenues consisting primarily of payments made by Massachusetts Municipal Wholesale Electric Company (MMWEC, power supply project revenue bonds rated A-plus with a stable outlook by Fitch) pursuant to a power sales contract (PSC) secure the bonds.
MMWEC's payment obligation is limited to the revenues it receives from 14 project participants under separate but identical power purchase agreements (PPAs). Each participant has covenanted to maintain rates sufficient to meet its obligations under its PPA.
Participant Strength and Improved Operations: The rating upgrade reflects the project participants' continued economic and financial strength and stability, as well as BWPCC's improved asset operations to near forecast levels at start up. The project participants are also participants in MMWEC's nuclear projects, all of which Fitch rates A-plus.
MMWEC Construct: MMWEC and 14 Massachusetts municipal light departments formed BWPCC to own the 15MW Berkshire Wind Energy Project, which became operational in May 2011.
