Standard & Poor’s (S&P) Global Ratings, Moody’s, and Fitch have released updated credit assessments for Basin Electric, once again recognizing the cooperative’s strong financial position. S&P affirmed Basin Electric’s A issuer credit rating, Moody’s upheld its A3 senior- secured rating, and Fitch affirmed its A long-term rating, signaling continued confidence in the cooperative’s long-term performance.
“Basin Electric continues to maintain strong investment grade credit ratings from the three rating agencies,” said Sarah Scherm, Basin Electric vice president and treasurer. “This is especially important as we are in the midst of borrowing to support our robust capital expenditure plan. A-level ratings allow us to issue debt at competitive interest rates, lowering the overall cost of service to our members.”
In its analysis, S&P evaluated both the cooperative’s current and expected long- and short-term debt obligations, including those tied to Basin Electric’s nonutility subsidiaries. The agency highlighted several factors supporting the rating, including ample liquidity, strong operating revenue, and the health of the traditional generation and transmission customer base.
Fitch’s credit opinion noted Basin Electric’s strong consolidated financial profile and disciplined utility rate setting. Highlighted strengths include: the wholesale power contracts and strong credit quality of our members, low operating costs, and strong liquidity.
Moody’s credit opinion similarly highlights the cooperative’s steady operational and financial strength within its core generation and transmission operations, as well as the experience of the board and the cooperative’s management team.
Each agency also notes perceived risks to the financial profile, including the large capital expenditure plan and the impact of non-utility subsidiaries. Even so, Basin Electric remains among the highest-rated generation and transmission cooperatives in the industry, reflecting its ongoing commitment to financial stability, credit strength, and the confidence of its members and financial partners.
