Summary: South Texas Electric Cooperative; Rural Electric Coop

S&P Global Ratings' 'A' issuer credit rating (ICR) on South Texas Electric Cooperative (STEC) remains on CreditWatch, where it had been placed with negative implications on March 3, 2021. The 'A' rating reflects our view of STEC's consistent financial performance, ample liquidity position, and declining leverage, and the strength of STEC's power supply portfolio, which performed relatively well during the February 2021 North American winter storm (unofficially known as Uri), which struck Texas in mid-February 2021. The rating remains on CreditWatch with negative implications despite a slightly net unfavorable outcome from the storm (prior to consideration of potential default uplift charges), because of the continued uncertainty associated with several factors facing the cooperative and many other Electric Reliability Council of

...S&P Global Ratings' 'A' issuer credit rating (ICR) on South Texas Electric Cooperative (STEC) remains on CreditWatch, where it had been placed with negative implications on March 3, 2021. The 'A' rating reflects our view of STEC's consistent financial performance, ample liquidity position, and declining leverage, and the strength of STEC's power supply portfolio, which performed relatively well during the February 2021 North American winter storm (unofficially known as Uri), which struck Texas in mid-February 2021. The rating remains on CreditWatch with negative implications despite a slightly net unfavorable outcome from the storm (prior to consideration of potential default uplift charges), because of the continued uncertainty associated with several factors facing the cooperative and many other Electric Reliability Council of Texas (ERCOT)-based utilities. Areas of uncertainty include billing disputes among participants in the ERCOT market; risk of customer and/or counterparty payment...

Summary