Fitch lifts Arkansas Electric

Fitch Ratings said it upgraded Arkansas Electric Cooperative Corp.’s implied senior secured obligations to AA- from A+ and $250 million maximum commercial-paper program to F1+ from F1.

The company’s long-term rating considers about $876.2 million in parity secured debt, the agency explained.

But the rating is assigned based on its status as an “implied” obligation since none of the outstanding debt is publicly held, Fitch said.

The company’s outlook also was revised to stable from positive.

The senior debt obligations are secured by a first lien on essentially all of the company’s assets, owned and intangible, which include electric generation and transmission facilities, the agency said.

The company’s credit strength stems from its long-term all-requirements contracts with its 17-member distribution cooperatives, low-cost power resources, competitive wholesale rates and diverse member base, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.