Summary: Austin, Texas; Retail Electric - S&P Global Ratings’ Credit Research

Summary: Austin, Texas; Retail Electric

Summary: Austin, Texas; Retail Electric - S&P Global Ratings’ Credit Research
Summary: Austin, Texas; Retail Electric
Published Aug 23, 2022
6 pages (2242 words) — Published Aug 23, 2022
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) on Austin, Texas' electric utility system (d/b/a Austin Energy) revenue debt to 'AA-' from 'AA'. The lowered rating reflects our view of the utility's weakened financial performance in fiscal years 2021 and 2020, as evidenced by lower fixed-charge coverage metrics ranging between 1.0x and 1.1x due in part to lower electric sales and higher annual debt service requirements, combined with our view of projected lower liquidity and coverage metrics that are lower than historical levels and not supportive of the previously assigned 'AA' rating. The stable outlook is based on our view of the utility's relative resilience to Electricity Reliability Council of Texas' (ERCOT) market price volatility due to

  
Brief Excerpt:

...+ S&P Global Ratings lowered its long-term rating and underlying rating (SPUR) on Austin, Texas' electric utility system (d/b/a Austin Energy) revenue debt to '##-' from '##'. + The lowered rating reflects our view of the utility's weakened financial performance in fiscal years 2021 and 2020, as evidenced by lower fixed-charge coverage metrics ranging between 1.0x and 1.1x due in part to lower electric sales and higher annual debt service requirements, combined with our view of projected lower liquidity and coverage metrics that are lower than historical levels and not supportive of the previously assigned '##' rating. + The stable outlook is based on our view of the utility's relative resilience to Electricity Reliability Council of Texas' (ERCOT) market price volatility due to its diverse power supply portfolio, and its plans to raise base rates in early 2023 to support stronger coverage metrics and its capital program....

  
Report Type:

Summary

Issuer
Sector
Global Issuers, Public Finance
Country
Region
Format:
PDF Adobe Acrobat
Buy Now

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Summary: Austin, Texas; Retail Electric" Aug 23, 2022. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Summary-Austin-Texas-Retail-Electric-2883475>
  
APA:
S&P Global Ratings’ Credit Research. (). Summary: Austin, Texas; Retail Electric Aug 23, 2022. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Summary-Austin-Texas-Retail-Electric-2883475>
  
US$ 225.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.