NEW YORK, Aug 26, 2011 (BUSINESS WIRE) — Fitch Ratings has upgraded Oncor Electric Delivery Company LLC’s (Oncor) Long-term Issuer Default Rating (IDR) to ‘BBB’ from ‘BBB-‘. The long term security ratings have also been upgraded by one-notch. The short-term IDR is affirmed at F3’. The Rating Outlook is Stable. A full list of ratings actions is provided below.
The upgrade reflects consistent strong performance by the utility over the last two years driven by a rebound in sales volume growth and balanced outcome of recent rate cases that have led to a steady improvement in key credit metrics. Fitch expects profitability and credit metrics to continue to appreciate over the forecast period led by significant transmission build out that is well supported by constructive regulation. Management’s refinancing initiatives in the fall of 2010 extended a portion of 2012-13 debt maturities, thus, lowering re-financing risk emanating from the concerns surrounding the financial health of its ultimate parent, Energy Future Holdings Corp. (IDR CCC).
Read the full press release at Marketwatch.com.
Is a policy analyst consultant for TCAP, a coalition of political subdivisions in Texas that purchase electricity in the deregulated market for their own governmental use. Because energy costs are typically a significant budget item to our members, TCAP is consistently looking for ways to save our members money, through cost-saving contracts, energy efficiency or demand response programs.