Strong bond ratings save customers millions in borrowing costs
Standard & Poor's, Fitch and Moody’s ratings services recently affirmed the AA, or equivalent, long-term rating to Colorado Springs Utilities’ bonds. The AA rating makes Springs Utilities one of the highest-rated utilities in the nation.
Judith Waite, primary credit analyst with Standard & Poor's, describes Springs Utilities’ strong financial management, competitive rates in each of its four systems, and a stable regional economic base as credit strengths in its August 6, 2009 RatingsDirect report.
Compared to an A rating, the AA rating means Springs Utilities’ and its customers will pay significantly less in interest payments. “Low interest rates are extremely important as we invest in and build infrastructure for the future of our community,” says Bill Cherrier, Colorado Springs Utilities chief planning and finance officer. “We believe that our substantial cost-cutting measures, such as the reduction of 200 positions over the past four years, have helped us maintain our strong bond rating.”
The agencies indicated the need for large capital expenditures over the coming years as a challenge for the municipally-owned utility.
