Post by Logan on Jun 3, 2016 19:59:52 GMT -6
ST. CROIX — Moody’s Investors Service on Thursday downgraded the Virgin Islands Water and Power Authority’s senior electric system revenue bond rating to Ba2 from Baa3 and the electric system subordinated revenue bond rating to Ba3 from Ba1, a move that sent W.A.P.A.’s bonds into junk status.
The ratings, which were placed on review for downgrade on March 31, 2016, remain on review for possible further downgrade, according to Moody’s.
The downgrade comes on the heels of a recent decision by the Public Services Commission to deny W.A.P.A. a requested electric rate increase and instead placed the petition under a 60-day review. The semiautonomous entity said it needed the increase to help stabilize its finances, and to have, at minimum, 45 days cash on hand, which equates to roughly $34 million. W.A.P.A. also said the rate increase would bolster the market’s confidence in the authority’s bonds.
According to Moody’s, W.A.P.A. has approximately $127 million in electric system revenue bonds outstanding and approximately $100 million in subordinated electric system revenue bonds.
Read more: viconsortium.com/business/ratings-firm-downgrades-wapa-bonds-to-junk-status/
The ratings, which were placed on review for downgrade on March 31, 2016, remain on review for possible further downgrade, according to Moody’s.
The downgrade comes on the heels of a recent decision by the Public Services Commission to deny W.A.P.A. a requested electric rate increase and instead placed the petition under a 60-day review. The semiautonomous entity said it needed the increase to help stabilize its finances, and to have, at minimum, 45 days cash on hand, which equates to roughly $34 million. W.A.P.A. also said the rate increase would bolster the market’s confidence in the authority’s bonds.
According to Moody’s, W.A.P.A. has approximately $127 million in electric system revenue bonds outstanding and approximately $100 million in subordinated electric system revenue bonds.
Read more: viconsortium.com/business/ratings-firm-downgrades-wapa-bonds-to-junk-status/