...This report details Fitch Ratings' approach to rating prepaid energy transactions, which are typically structured to provide municipal utilities with a long-term, fixed supply of energy (mainly natural gas or electricity) at a unit price that reflects a predetermined and fixed discount to the market energy price. These criteria build upon Fitch's master criteria report U.S. Municipal Structured Finance Criteria. The key elements of Fitch's prepaid energy rating criteria remain largely consistent with its prior criteria reports. Not all rating factors outlined in this report may apply to each individual rating or rating action. Each specific rating action commentary or rating report will discuss those factors most relevant to the individual rating action....
