Austin Energy Receives Updated Bond Ratings

Fitch Ratings has upgraded Austin Energy’s bond ratings to ‘AA’, up from a ‘AA-‘, for the city-owned utility.
 
The ‘AA’ rating is assigned to approximately $465 million in Electric Utility System Revenue Bonds. Austin Energy is using proceeds from these bonds to acquire Nacogdoches Power LLC, the owner and operator of a biomass plant near Nacogdoches, TX.
 
The rating of ‘AA’ covers Austin Energy, as well as $1.1 billion million in outstanding electric utility system revenue bonds and $91 million combined utility systems revenue bonds.
 
Fitch Ratings noted in a press release that “AE’s operating costs have remained low despite significant strides made toward the City’s renewable and clean energy goals…the upgrade also reflects AE’s strong financial performance and service area growth.”
 
Jackie Sargent, Austin Energy General Manager, said that she is very pleased with the announcement from Fitch.
 
“This designation from Fitch not only highlights Austin’s strong economy and growth, but shows that Austin Energy continues to make the best decisions for our customers,” Sargent said. “Fitch noted the utility’s commitment to diversified assets, affordable rates and low and stable operating costs.”