Officials with the Atlantic Municipal Utilities are pleased to report Moody’s Investor Services has assigned an A1 rating to AMU’s’ proposed $7.3 million Revenue Bonds. Moody’s Investors Service assigned the A1 rating to AMU’s $4.8 million Electric Revenue Refunding Capital Loan Notes, Series 2015A and $2.5 million Electric Revenue Capital Loan Notes, Series 2015B.

Among the items cited in Moody’s report were AMU’s sound financial operations resulting in strong coverage levels, a modest debt burden and management’s conservative budgeting approach. AMU General Manager Steve Tjepkes says the positive assessment and rating will help ensure the lowest available interest costs for the upcoming debt issuance.  According to Tjepkes, “Industry wide, electric utility credit ratings have been declining for a number of years, so for AMU to be able to continue maintaining an A1 credit rating is something we should be proud of. Our relative small size and our concentration in coal-fired generation are the two characteristics that keep us from getting a higher credit rating.”

The proceeds from the Series 2015A Notes will advance refund AMU’s currently outstanding Series 2007 Notes for an expected savings of approximately $250,000. The Series 2007 Notes have interest rates of approximately 4% while the replacement 2015A Notes will have an average rate of less than 2%.

The proceeds from the Series 2015B Notes will finance current improvements and extensions to the electric system, including replacement of the control system on AMU’s local gas generator and AMU’s share of the costs of improvements at the Walter Scott, Jr. Energy Center Unit 3 facilities in Council Bluffs.

Moody’s Investors Service provides financial research on bonds issued by commercial and government entities and ranks the creditworthiness of borrowers using a standardized ratings scale.

(Press Release)