Fitch Ratings has reaffirmed its top AA+ rating for revenue bonds issued by the city of Chattanooga for the city-owned EPB.
EPB is planning to issue up to $125 million in bonds in December to finance capital improvements and expansions of the utility's 600-square-mile service territory. EPB directors last month approved the bond issue to help meet its growing customer demand after adding more than 3,000 electric meters in the past year.
Although EPB avoided taking on debt through much of its 88-year history, the city-owned utility has issued bonds during the past couple of decades to finance its downtown headquarters building, expand its fiber optic network across its service territory and to pay for other grid improvements and additions.
In its analysis of EPB, Fitch said the city utility still maintained a relatively low debt level compared to its revenues and its electric rates remain below the U.S. and regional average.
"EPB's very strong operating risk profile primarily reflects a very low operating cost burden that has averaged 10.36 cents/kilowatt-hour over the past five years," Fitch said in its assessment of EPB.
Fitch said EPB's rating outlook is stable.
— Compiled by Dave Flessner