Standard and Poor’s has informed the District that it has completed its recent evaluation of the District’s Distribution System and Wells Project and confirms the outstanding rating of AA for both systems. “The confirmation of these ratings accurately reflects the financial performance of Douglas PUD as well as the utility’s ability to deliver benefits to Douglas County residents well into the future,” said Douglas PUD general manager Bill Dobbins.
Standard and Poor’s believes the credit rating outlook for the District's Distribution System and Wells Project bonds is stable because of the District's consistently strong financial performance, operational practices that substantially minimize power production curtailment risk, and exceptionally competitive power supply quantity and cost.
Moody’s Investors Service rated the District’s Distribution System and Wells Project at Aa3 which is one step change from the prior rating of Aa2. Moody’s has changed its ratings approach, evaluating the District on a consolidated basis rather than as two separate credits as has been done in the past. In Moody’s view low Columbia River run off, reduced wholesale power price due to recessionary pressure, and resulting lower cash reserves have a negative effect on the District’s credit.
“Standard and Poor’s confirmed rating is a strong sign to investors of the strength of Douglas PUD bonds and the District continues to be strongly rated by Moody’s, even with the rating change,” said Dobbins. The rating activity is a result of a planned August 19th sale of Wells Hydroelectric Project Revenue Bonds.
