Virgin Islands Water and Power Authority; Retail Electric Jan 12
Standard & Poors, January 2012
Abstract
Standard & Poor's Ratings Services has assigned its 'BBB-' rating to Virgin Islands Water and Power Authority's (WAPA) electric system revenue bonds, series 2012A, 2012B, and 2012C. At the same time, Standard & Poor's affirmed its 'BBB-' rating on WAPA's debt outstanding. The outlook is stable. Net electric system revenues secure the bonds. The 'BBB-' rating reflects our assessment of the following factors, which we view as credit weaknesses: High dependence on a single fuel type (oil), which we believe results in volatile rates and vulnerability to price spikes; High leverage, due in part to a $40 million deficit financing linked to high oil prices the past three years that reduced debt service coverage (DSC) levels; A low cash position,...
Companies mentioned in this report are: Virgin Islands Wtr & Pwr Auth
Action: New Rating
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Virgin Islands Wtr & Pwr Auth
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