Moody’s affirms Basin Electric’s ratings in October

The ratings agency Moody’s Investors Service affirmed Basin Electric’s long-term and short-term ratings on Oct. 29.

Steve Johnson, Basin Electric senior vice president and chief financial officer, said semi-annual updates are provided to the three agencies who publish ratings for Basin Electric. The update in July was held virtually due to the ongoing COVID-19 global pandemic.

Moody’s affirmed Basin Electric’s senior secured long-term rating of A3, and short-term rating of P-2, both with a stable outlook.

“Moody’s pointed to Basin Electric’s performance as we transition into regulation of our wholesale power rates by the Federal Energy Regulatory Commission, and also our strong member relationships as we maintain our long-term wholesale power contracts,” Johnson said. “They also noted our revenue deferral program and strong liquidity.”

Johnson said Moody’s continues to show concern regarding the volatility of commodity markets. “Basin Electric is unique from other generation and transmission cooperatives in that we have a large, nonpower subsidiary in Dakota Gasification Company,” Johnson said. “We make sure to show the efforts we are making in mitigating those risks. We also update them on the progress we are making with ESG (environmental, social, and governance). The addition of the Nemadji Trail Energy Center project (new natural gas-based generation to be built in Wisconsin) is also a positive.”

S&P Global affirmed Basin Electric’s rating on Aug. 25 with a long-term senior secured rating as ‘A’ and a stable outlook, and short-term rating of A1.

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