Standard&Poor's Ratings Services has affirmed its 'A' rating on Indianapolis, Ind.'s thermal energy system bonds outstanding. The outlook is stable. The 'A' ratings reflects what we consider to be the steam utility's continued favorable regulatory climate and the unregulated chilled water utility's good growth. We believe long-term contracts, a small-but-stable customer base, and competitive rates from Citizens Thermal Energy Inc., the utility providing the steam and chilled water, further support the ratings. In our view, additional credit strengths include: The strong business position of the regulated steam division, which benefits from a fuel cost adjustment mechanism; and Long-term contracts with highly rated leading customers Indiana University-Purdue University at Indianapolis (IUPUI) for chilled water and steam, and pharmaceuticals manufacturer
