Colorado Springs, CO Utilities' System Revenue Debt Rating Outlook Revised To Negative

CENTENNIAL (S&P Global Ratings) Aug. 25, 2022--S&P Global Ratings revised the outlook to negative from stable on Colorado Springs, Colo. Utilities' (CSU) utilities system revenue debt outstanding. The revised outlook reflects CSU's exposure to energy and fuel price volatility given that it has only hedged approximately half of its average demand in gas supply through short- and medium term-contracts, which exposes it to recontracting risk and spot market pricing volatility for the remaining open position. This reflects negatively in our credit rating analysis as a governance weakness that we incorporate into our assessment of management and its risk management, culture, and oversight practices that we capture under our ESG factors. At the same time, S&P Global Ratings assigned its 'AA+'

...August 25, 2022 CENTENNIAL (S&P Global Ratings) Aug. 25, 2022--S&P Global Ratings revised the outlook to negative from stable on Colorado Springs, Colo. Utilities' (CSU) utilities system revenue debt outstanding. The revised outlook reflects CSU's exposure to energy and fuel price volatility given that it has only hedged approximately half of its average demand in gas supply through short- and medium term-contracts, which exposes it to recontracting risk and spot market pricing volatility for the remaining open position. This reflects negatively in our credit rating analysis as a governance weakness that we incorporate into our assessment of management and its risk management, culture, and oversight practices that we capture under our ESG factors. At the same time, S&P Global Ratings assigned its '##+' long-term rating, with a negative outlook, to the city's anticipated $123 million series 2022A utilities system refunding revenue bonds and $147 million series 2022B utilities system improvement...

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