...S&P Global Ratings has assigned its '##' rating to Seattle's 2018 series A municipal light and power improvement bonds. The utility does business as Seattle City Light (SCL). At the same time, S&P Global Ratings affirmed its '##' underlying rating on about $2.3 billion of SCL's parity debt. The outlook is stable. We believe credit strengths include: + A low-cost hydro-based generation portfolio that can meet demand under most water conditions, including below-normal water levels; + A strong and diverse customer base; and + Competitive retail rates, despite significant increases in the past few years. In our view, offsetting factors include some reliance on wholesale sales; and what we view as a large, $2.5 billion capital improvement program covering 2018-2023, which management expects to issue about $1.5 billion of debt to fund. Seattle pledges the light system's gross revenues to pay debt service on the A bonds, and anticipates using proceeds to fund the utility's capital and conservation...
