San Miguel Electric Cooperative, TX Ratings Remain On CreditWatch Based On ERCOT Uncertainty

SAN FRANCISCO (S&P Global Ratings) April 30, 2021--S&P Global Ratings' 'A' issuer credit rating (ICR) on San Miguel Electric Cooperative (SMEC), Texas, and our 'A' long-term rating on Atascosa County Industrial Development Corp.'s (IDC) series 2020 pollution control refunding revenue bonds (issued on behalf of SMEC) both remain on CreditWatch, where they had been placed with negative implications on March 3, 2021. "The ratings remain on CreditWatch with negative implications because of continued uncertainty associated with several factors facing the utility or South Texas Electric Cooperative--its sole offtaker and therefore a key credit driver--and many other Electric Reliability Council of Texas (ERCOT)-based utilities," said S&P Global Ratings credit analyst Paul Dyson. Areas of uncertainty include billing disputes among participants in

...April 30, 2021 SAN FRANCISCO (S&P Global Ratings) April 30, 2021--S&P Global Ratings' 'A' issuer credit rating (ICR) on San Miguel Electric Cooperative (SMEC), Texas, and our 'A' long-term rating on Atascosa County Industrial Development Corp.'s (IDC) series 2020 pollution control refunding revenue bonds (issued on behalf of SMEC) both remain on CreditWatch, where they had been placed with negative implications on March 3, 2021. "The ratings remain on CreditWatch with negative implications because of continued uncertainty associated with several factors facing the utility or South Texas Electric Cooperative--its sole offtaker and therefore a key credit driver--and many other Electric Reliability Council of Texas (ERCOT)-based utilities," said S&P Global Ratings credit analyst Paul Dyson. Areas of uncertainty include billing disputes among participants in the ERCOT market; risk of customer and/or counterparty payment default; ERCOT short-pays and potential uplift charges, which reflect socialization...

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