S&P Global Ratings lowered its long-term rating on the Utilities Board of Tuskegee (UBT), Alabama's utility revenue debt outstanding to ‘BBB+’ from ‘A-‘. At the same time, S&P Global Ratings lowered its long-term rating on Tuskegee-UBT Cooperative District , Alabama's subordinate-lien revenue debt outstanding to ‘BBB’ from ‘BBB+’. The outlook is stable. The downgrade reflects UBT’s weakened financial performance and significant near-term capital needs related to new industrial customers, which we believe requires the system to maintain a higher level of reserves and liquidity on a sustained basis. At fiscal year-end Sept. 30, 2025, UBT had $33 million of long-term debt outstanding. Electric revenue represents about 63% of its net operating revenue, which is the focus of our credit analysis.
