21 Oct
Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of CORE Electric Cooperative (CORE) at ‘AA-‘, with a Stable outlook. ‘AA-‘ is in the highest public rating tier achieved for electric distribution cooperatives rated by Fitch Ratings.
“The ‘AA-‘ IDR reflects CORE’s very strong financial profile in the context of a rapidly growing and diverse retail customer base, very strong revenue defensibility characteristics, very low but increasing operating costs, a diverse supply of energy, and a manageable capital plan,” stated Fitch Ratings in its report.
Highlights of the credit report include:
• Strong revenue defensibility and financial profile supported by a rapidly growing and diverse retail customer base
• Very strong rate flexibility with the independent ability to set rates, which Fitch considers very affordable
• Low but growing operating cost burden with the transition to a more actively managed power supply portfolio
• Manageable capital planning and management needs
• Leverage has remained below 8x and relatively stable, while liquidity has improved and is neutral to the rating
“We’re proud to have our credit rating reaffirmed, particularly during a time of significant transition for both CORE and the electric utility industry. This affirmation reflects our focus on making sound financial decisions and responsibly stewarding our members’ assets,” said CORE’s Chief Executive Officer Pam Feuerstein.
The detailed credit rating summary can be found at: Fitch Affirms CORE Electric Cooperative’s IDR at ‘AA-‘; Outlook Stable