NEW YORK--(BUSINESS WIRE)--In its annual U.S. Public Power Peer Study, Fitch Ratings says debt service coverage remained stable overall as improved electric sales and selective rate increases offset slightly higher debt service costs. The report highlights the fiscal 2010 financial performance of Fitch-rated wholesale and retail public power systems, as well as rural electric cooperatives.
According to the study, cash on hand decreased slightly for U.S. public power issuers as funds were used to finance capital plans, and extremely low interest earnings discouraged high short-term balances. While capital expenditures declined slightly, capital spending levels remained above asset depreciation. Additionally, debt levels increased as many issuers took advantage of favorable rates and/or the expiring Build America Bond Program in fiscal 2010 to pre-fund expenditures. Variable-rate debt issuance remained low as the trend to convert outstanding variable-rate debt to fixed-rate continued.
The study utilizes eight financial ratios that are calculated from the most recent annual audits. The ratios are presented by utility type, rating category, and region. A utility's financial measures, relative to an appropriate Fitch-designated regional and national peer group, constitute an important component of Fitch's credit analysis. Along with the Annual Peer Study, Fitch is also publishing an Excel Addendum for the second year. This year, the Addendum has been expanded to include three years of financial data for retail, wholesale, and rural electric cooperative utilities, along with improved sorting functionality which should add greater flexibility when comparing utilities and metrics.
Fitch's 2011 edition of its annual 'U.S. Public Power Peer Study' and 'U.S. Public Power Peer Study Excel Addendum' are available on the company's website, at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'
Applicable Criteria and Related Research: 2011 U.S. Public Power Peer Study -- Excel Addendum
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=638690
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