Chugach Electric financial rating upgraded
S&P Global Ratings (S&P) has upgraded Chugach Electric Association’s financial rating to “A” from its previous “A-.” The rating agency also provides an outlook of “Stable” for Chugach.
S&P cited the following primary factors that contributed to the upgrade:
- Continued strong competitive position;
- Consistently good financial performance;
- Successful management of its transition into a mostly retail utility over the past three years; and
- Declining leverage
Additionally, S&P noted the rating upgrade reflects Chugach’s positive and supportive relationship with the Regulatory Commission of Alaska (RCA). The upgrade can lead to lower borrowing costs for future financings.
“We are very pleased to see this rating upgrade from S&P,” said Chugach CEO Lee Thibert. “This announcement reflects our ability to remain financially strong while adapting to a changing economy, and it allows us to continue to provide service to our members at the lowest cost possible.”
Chugach is the largest electric utility in Alaska, providing power for more than 68,000 members from south Anchorage to the northern Kenai Peninsula, and from Whittier on Prince William Sound to Tyonek on the west side of Cook Inlet.