The 'A-' Standard & Poor's underlying rating (SPUR) on Nebraska Municipal Energy Agency's power supply system revenue bonds reflects: The stability and diversity of the revenue streams; The existence of an implicit step-up, whereby the agency's long-term full-requirements members step up to meet the debt service obligation of a defaulting participant through higher rates; Diverse sources of power supply, although a sizeable 133 MW of additions to the agency's portfolio will come from TWO baseload coal plants; Management's conservative financial policies; and A lack of competitive threats. The rating is constrained by the fact that participant electric systems have below-average business profiles and average retail electric rates that tend to be above state averages in the industrial users class. While...
Companies mentioned in this report are: Nebraska Mun Energy Agy
Action: Outlook: Stable
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