S&P Global Ratings has raised Cooperative Energy’s issuer credit rating from ‘A-’ to ‘A’. S&P Global Ratings also raised its rating on the cooperative’s series 2009A Mississippi Business Finance Corporation’s $40 million Gulf Opportunity Zone Bonds from ‘A-’ to ‘A’ with a stable outlook. Cooperative Energy (Cooperative), which recently changed its name from South Mississippi Electric Power Association, is a not-for-profit generation and transmission cooperative that provides wholesale electric service to 11 retail electric distribution cooperatives located in the southern and western portions of the state of Mississippi.
The rating upgrade is based on a number of factors, including the Cooperative’s strong liquidity position, projected fixed charge coverage ratios and stable debt balances. The rating agency views Cooperative Energy’s projected capital expenditures and debt management plans as reasonable.
“This favorable action by S&P follows rating agency upgrades by Moody’s in November 2015 and Fitch one month ago,” said Cooperative Energy President/CEO Jim Compton. “The strength of our not-for-profit, member-owned, cooperative business plan is being recognized broadly.”