Moody’s rates TVA bonds Aaa

Moody's Investors Service said it assigned an Aaa rating to Tennessee Valley Authority's $1 billion 2018 series A global power bonds due March 2020.

The outlook is stable.

Proceeds will be used to pay down short-term debt and for general corporate purposes.

The agency said the rating on TVA considers the governing legislation that provides protections from competition and places significant restrictions on TVA's ability to expand outside its defined service territory, the board's statutory authority to set TVA's electric rates and long-term contractual arrangements with creditworthy counterparties which, among other things, provide TVA with regulatory control over their retail rates and fund transfers.

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