Summary: American Municipal Power Inc., Ohio Pioneer Village; Note

S&P Global Ratings assigned its 'SP-1+' short-term rating to American Municipal Power Inc (AMP), Ohio's $3.95 million series 2021 electric system improvement revenue bond anticipation notes (BANs), issued for the Village of Pioneer, Ohio. According to the loan agreement between AMP and Pioneer, AMP will provide the village with interim financing for certain major electric system projects and upgrades. The village will be obligated to repay the interim financing from revenues of its electric system. However, we base our rating on the standby note purchase agreement (SNPA) among AMP, the Village of Pioneer, the state treasurer, and the note registrar (The Huntington National Bank)--whereby the state treasurer agrees to purchase the notes at maturity if the issuer does not provide

...S&P Global Ratings assigned its 'SP-1+' short-term rating to American Municipal Power Inc (AMP), Ohio's $3.95 million series 2021 electric system improvement revenue bond anticipation notes (BANs), issued for the Village of Pioneer, Ohio. According to the loan agreement between AMP and Pioneer, AMP will provide the village with interim financing for certain major electric system projects and upgrades. The village will be obligated to repay the interim financing from revenues of its electric system. However, we base our rating on the standby note purchase agreement (SNPA) among AMP, the Village of Pioneer, the state treasurer, and the note registrar (The Huntington National Bank)--whereby the state treasurer agrees to purchase the notes at maturity if the issuer does not provide sufficient funds to pay before the maturity date--and the state treasurer's maintenance of very strong liquidity supporting the note obligation. The SNPA's execution is done under what the treasurer refers to as...

Summary