S&P Global Ratings affirmed its 'A' issuer credit rating (ICR) on San Miguel Electric Cooperative Inc. (SMEC), Texas. We also affirmed our dual 'A/A-1' rating on the Atascosa County Industrial Development Corp.'s (IDC) series 2008 variable-rate pollution control refunding revenue bonds, issued for San Miguel. The outlook is stable. The Jourdanton-based generation and transmission (G&T) cooperative had $273 million in debt outstanding as of Dec. 31, 2019. San Miguel operates a 391-megawatt (MW) mine-mouth lignite coal plant, selling 100% of its output under a take-or-pay wholesale power contract (through 2037) with South Texas Electric Cooperative (STEC), which, in turn, serves eight member distribution cooperatives with 288,000 end-use customers. Our rating reflects the creditworthiness of SMEC as the ultimate obligor, but
