Wabash Valley Power maintains ‘A-’ credit rating from S&P Global

View All News

A prominent international credit rating agency affirmed Wabash Valley Power’s “A-” credit rating with a stable long-term outlook.

S&P Global, which evaluates the credit worthiness of organizations around the world, reviewed WVPA’s finances and operations to determine the rating. The agency listed Wabash Valley Power’s long-term contracts and diverse power supply, which included purchasing a share of Marissa, Ill.-based Prairie State Energy Campus, as among the strengths for the credit rating.

“We are viewed as having very good credit when talking to the investment community,” said Jeff Conrad, chief operating officer for Wabash Valley Power, which supplies electricity to 23 member co-ops in Indiana, Illinois and Missouri. “When we go out for financing, banks and lenders are typically very interested in doing business with us as a result.”

S&P indicates on its website that an “A” credit rating indicates an organization has “strong capacity to meet financial commitments,” though it can be impacted by unexpected changes. A plus or minus shows an organization’s standing within the category.

“Wabash management made several changes to its power supply portfolio in 2016” that were viewed as “credit neutral to credit positive,” S&P Global wrote in its report.

An “A-” credit rating is beneficial and ensures low interest rates, leading to lower costs for Wabash Valley Power, member co-ops and ultimately their customers, Conrad said. The full detailed S&P Global report can be found here.