...S&P Global Ratings' affirmed its 'A' issuer credit rating (ICR) on San Miguel Electric Cooperative (SMEC), Texas, and its 'A' long-term rating on Atascosa County Industrial Development Corp.'s series 2020 pollution control refunding revenue bonds issued on behalf of SMEC, and removed the ratings from CreditWatch, where they had been placed with negative implications on March 3, 2021. The outlook is stable. The CreditWatch removal follows a similar action today on South Texas Electric Cooperative (STEC). While the ratings reflect our view of SMEC's creditworthiness as the ultimate obligor, the ratings are highly influenced by our view of STEC as sole offtaker of SMEC's coal-fired generation under a take-or-pay contract. The ratings also reflect our view of SMEC's consistent financial performance, ample liquidity position, and declining leverage, and the importance of SMEC's core generating asset to STEC. The CreditWatch removal for the STEC rating reflected our view of STEC's favorable power...
