Outlook On Chattanooga, TN, Electric System Revenue Bonds Outstanding Revised To Positive; 'AA' Rating Affirmed May 11
- Language: English
- Published: May 2011
Standard & Poor's Ratings Services has revised its outlook on Chattanooga (EPB or the utility), Tenn.'s electric system revenue bonds outstanding to positive from stable. At the same time, Standard & Poor's affirmed its 'AA' rating on the bonds. At fiscal year-end 2010 (June 30), the utility had $291 million of debt outstanding. The outlook revision reflects our view that management's assumptions are reasonable and should lead to stronger financial metrics within our two-year outlook horizon. These assumptions include an electric rate increase in mid-2011 and continuing strong customer growth for the telecommunications and Internet systems. A net revenue pledge of the electric system secures the bonds. In 2008, EPB issued $200 million of revenue bonds to fund the build-out...
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Action: Outlook: Positive
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