Implied senior secured obligations, implied senior unsecured obligations and issuer default rating have been affirmed with a "BBB" rating from Fitch Ratings in New York of Oct. 19. | Stock Photo
Implied senior secured obligations, implied senior unsecured obligations and issuer default rating have been affirmed with a "BBB" rating from Fitch Ratings in New York of Oct. 19. | Stock Photo
Implied senior secured obligations, implied senior unsecured obligations and issuer default rating have been affirmed with a "BBB" rating from Fitch Ratings in New York as of Oct. 19.
The three "BBB" ratings are all Southern Illinois Power Cooperative ratings, according to Fitch Ratings.
"The rating is on implied obligations because none of SIPC's approximately $515.1 million outstanding long-term or short-term borrowing is publicly held," said Fitch Ratings on its website. "The Rating Outlook is stable."
"BBB" is the high leverage ratio the company has for its revenue defensibility and strong operating risk profile. Southern Illinois Power Cooperative's defensibility is supported by the company's "all-requirements wholesale power contracts with unlimited reallocation," but it remains constrained by the middle range of the quality of credit of the largest member of the cooperative.
"The strong operating risk profile reflects the cooperative's consistently low operating cost burden with high reliance on coal-fired generating assets. SIPC's current debt burden stems in part from its investment in the Prairie State Energy Campus (PSEC)," said Fitch Ratings on its website.
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