Moody's Investors Service said it has upgraded the New York State Power Authority's (NYPA or the Authority) approximately $1.1 billion of revenue bonds outstanding to Aa1 from Aa2, and affirmed its short-term ratings for commercial paper and variable rate bonds at P-1 and VMIG 1 respectively.
The outlook for NYPA is stable.
The upgrade reflects disciplined financial practices that will enable NYPA to expand on its strategic objectives of providing low cost, reliable, clean energy in a manner the encourages business development in the state of New York.
Its credit metrics are among the strongest of all U.S. public power electric utilities with generation ownership in our rated universe.
The authority is an integral part of state supported plans to reinforce and modernize New York's electric grid and promote economic development and efficiency. As the owner of over 3,200 MWs of upstate hydroelectric facilities, and about a third of the state's high-voltage transmission facilities, NYPA is uniquely positioned to provide very low-cost, clean energy in support of state goals.
The authority's strong balance sheet positions it well to continue to invest in the modernization and expansion of its system while maintaining solid financial metrics and, given the current credit profile of New York State (Aa1, general obligation) the rating agency anticipates future transfers to the state will be relatively modest, and it expects the state will continue the return of funds that were temporarily transferred to it in 2009.
