Roseville Finance Authority in California received an A-plus rating and stable outlook from Fitch Ratings ahead of plans on Oct. 17 to price $74.5 million in electric system revenue refunding bonds.
The finance authority will issue the bonds on behalf of Roseville Electric, a city department.
The series 2013 bonds will mature serially through 2034, according to the Fitch report released Oct. 10. Proceeds will be used to refund a portion of the outstanding series 2004 and 2005 electric system certificates of participation and pay the cost of issuance, according to the Fitch report.
Fitch also gave an A-plus rating to roughly $150 million in outstanding Roseville Electric debt. The rating applies to $55.8 million of outstanding Roseville Finance Authority electric system revenue bonds, series 2010 and $98.4 million of outstanding COPs, series 2004, 2005A and 2009, all or a portion of the 2004 and 2005A COPs will be refunded.
The bonds and COPs are secured by a pledge and lien on the net revenues of the electric system.
Roseville Electric provides retail electric service to 54,948 customers within the city of Roseville, Ca.
Fitch cited the utility’s continued customer growth even through the recession as a factor in the rating. The city also has shown improved financial metrics as a result of efforts by management, analysts said.
The city also does not plan to issue new debt in the near term and capital plans will be funded from operations and construction development fees.