NEW YORK - Moody's Investors Service said it has upgraded the ratings of Western Minnesota Municipal Power Agency's approximately $277 million of power supply revenue bonds to Aa3 from A1.
Bonds outstanding include $9 million 2010 Series A; $32.5 million 2010 Series B (federally taxable); $99.9 million 2010 Series C (Build America Bonds-direct payment-federally taxable); $50 million 2006 Series bonds and $86 million 2003 Series bonds. The rating outlook is stable.
The Aa3 rating for the power supply bonds reflects Moody's fundamental view of the consolidated credit quality of Missouri River Energy Services, which is the ultimate source of repayment for the bonds.
The rating considers the agency's sound financial policies which have resulted in ample liquidity and strong debt service coverage for the Western Minnesota Power Agency bond holders.
The rating also reflects the low cost of power enjoyed by the member participants as well as the diversity and overall credit quality of the 60 utility systems which are the source of the revenues pledged to service the bonds. The rating also considers the steps the agency has taken to ensure future capacity and improve resource diversity.
