The Guam Power Authority has received notice from S&P (Standard & Poors) Global Ratings, a bond rating company that the Authority’s current rating of BBB with a stable outlook, has been affirmed.
“We (GPA) remain an investment grade utility – S&P continues to have a stable outlook for the Authority,” stated John J. Kim, Chief Financial Officer, “S&P has recognized GPA’s continued progress towards improving our financial position, cost cutting initiatives as well as GPA’s operational performance.”
Some of the reasons cited for affirming the positive rating were the solid track record of GPA’s governance structure, continued improvements on system reliability, an improved financial profile and a good working relationship between GPA, the Consolidated Commission on Utilities (CCU) and the Public Utilities Commission (PUC). S&P also cited that GovGuam remains current on all department of education and department of public works payments, and overall cash flow and reserves have improved greatly since 2012.
“Improving system reliability, operational efficiency and fuel cost recovery continue to lead the Authority’s drive to maintain investment grade,” remarked Kim, “With current plans to add more alternative energy technologies to our power grid, reduce operational costs and engage partnerships for new generation facilities, maintaining investment grade will improve efforts to obtain the financing needed to build and invest into energy solutions that will mitigate future LEAC increases.”
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