Colorado Springs, Colorado; Combined Utility

S&P Global Ratings revised the outlook to negative from stable on Colorado Springs Utilities' (CSU), Colo. utilities system revenue debt outstanding. At the same time, S&P Global Ratings assigned its 'AA+' 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 revenue bonds. Finally, S&P Global Ratings affirmed its 'AA+', 'AA+/A-1+', and 'AA+/A-2' ratings on the system's 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

...S&P Global Ratings revised the outlook to negative from stable on Colorado Springs Utilities' (CSU), Colo. utilities system revenue debt outstanding. 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 revenue bonds. Finally, S&P Global Ratings affirmed its '##+', '##+/A-1+', and '##+/A-2' ratings on the system's 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...

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