Moody's Upgrades BPU to A2 Credit Rating, Stable Outlook
The Kansas City Board of Public Utilities’ (BPU) credit rating was recently upgraded by Moody’s rating service from A3 to A2, while its future ratings outlook was classified as Stable. The upgrade reflects, among other things, the municipal utility’s successful management of environmental compliance standards and the change in BPU’s energy mix, with a lesser reliance on coal and more dependency on natural gas and other renewable energy sources (e.g. wind, solar).
Moody’s noted that BPU continues to report stable financial metrics, including coverage and liquidity, and that these metrics have remained stable despite the need for increased debt service in order to comply with new federal MATS environmental standards. In addition, BPU was recently recognized with the Certificate of Achievement for Excellence in Financial Reporting Award from the Government Finance Officers Association (GFOA) for its accounting and financial reporting, and its comprehensive annual financial report.
“BPU is pleased with this recent credit rating upgrade, which acknowledges the utility’s diversification of its portfolio toward renewable energy, as well as our stable financial metrics,” stated Don Gray, General Manager of BPU. “BPU has been meeting the electric and water needs of this community for more than 100 years, and we continue to position BPU to meet all of Wyandotte County’s utility needs well into the future.”
BPU’s water department was originally created in 1909, and its electric utility was operational in 1912. The purpose of the utility, then and to this day, is to provide the highest quality electric and water services at the lowest possible cost. Today the publicly owned utility serves approximately 63,000 electric and 50,000 water customers, primarily in Wyandotte County, Kansas. The mission of the utility and its employees is “to focus on the needs of our customers, to improve the quality of life in our community while promoting safe, reliable and sustainable utilities.” BPU’s Web site is www.bpu.com.