Menu

Moody's Investors Service Improves BED's Credit Rating

FOR IMMEDIATE RELEASE

November 10, 2015
Contact:  Jennifer Kaulius
                 802.324.2505

Moody’s Investors Service Improves BED’s Credit Rating
Recognizes Renewable, Reliable Power and Efficiency; Proactive Strategic Planning;
Improved Financial Metrics

Burlington, VT – Moody’s Investors Service yesterday upgraded the Burlington Electric Department’s credit rating to Baa1 from Baa2, citing BED’s renewable and reliable power supply, energy efficiency measures, and proactive strategic planning by BED management as important factors for the boost.

The Moody’s report notes:

  • “The rating upgrade takes into consideration the improved financial record of Burlington Electric Department; competitive rates; the shift to a more diverse power supply mix; and the strengthening local economy.”
  • “A positive factor in the rating is the proactive stance of management in its strategic planning regarding the evolving power industry. A focus on efficiency programs; renewable energy supply and positioning the utility organization through improved operations factor into our view about BED.”
  • “The stable outlook reflects the improving trend of BED’s financial position that is reflected in the utility’s financial forecasts showing continued improvement in financial metrics.”
     

“This credit rating upgrade validates BED’s efforts to source renewable power, expand efficiency programs, and restructure the organization to succeed in the changing utility landscape,” said Mayor Miro Weinberger. “The upgrade – which will lower BED borrowing costs in the future – also demonstrates that the Administration and City Council’s focus on strong municipal finances is generating real financial savings for Burlington residents, institutions, and businesses, and underscores the importance of continuing these efforts. Congratulations to General Manager Neale Lunderville and the entire BED team for their string of recent successes.”

“Strong financial management is part of BED’s continued commitment to the customers we serve,” said Lunderville, BED General Manager. “As this upgrade demonstrates, Moody’s understands the importance of adapting to a changing energy market. Our ability to lead the green energy revolution depends on a solid financial foundation.”

“It takes a great team – from City Hall to frontline staff – to achieve an upgrade from Moody’s,” Lunderville added. “I want to offer special praise to Daryl Santerre, BED’s Chief Financial Officer, for his unwavering focus on lifting our credit rating, and to the Burlington Electric Commission for their continuous attention to improving our financials.”

The recent history of BED’s credit ratings and outlooks follows:

Date

Action

Rating

Outlook

11/9/15

Upgrade from Baa2

Baa1

Stable

7/22/14

Affirm

Baa2

Positive

12/20/13

Affirm

Baa2

Stable

10/22/12

Affirm

Baa2

Negative

10/06/11

Affirm

Baa2

Negative

10/13/10

Downgrade from A3

Baa2

Stable

3/17/04

Affirmed

A3

Stable

 

*Moody’s Investors Service BED Rating Update attached.

 

# # #

Press Release Date: 
11/10/2015
City Department: 
Mayor's Office