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Fitch Upgrades Big Rivers Credit Rating to BBB

Fitch Upgrades Big Rivers Credit Rating to BBB

August 15, 2022

Fitch Ratings - New York

Fitch Ratings has upgraded the following ratings on Big Rivers Electric Corporation, KY to 'BBB' from 'BBB-

The Rating Outlook is Stable.

ANALYTICAL CONCLUSION

The Issuer Default Rating (IDR) is upgraded to 'BBB' from 'BBB-' reflecting a continued trend of improved financial performance, which has resulted in consistently lower leverage over the past few years. The improved performance is due to several factors including full realization of member rates, increased demand from contracted sales to nonmembers, and greater cash flows from cost recovery of regulatory assets.

Big Rivers' leverage ratio, measured as net adjusted debt to adjusted funds available for debt service (FADS), declined from over 9.0x in 2017 to 7.2x in 2020, and declined further in 2021 due to stronger revenue collections and an increase in non-cash depreciation expenses for the year. Further, Fitch expects a continued trend of strong cash flow and leverage ratios through its FAST stress scenario that support the 'BBB' rating.

Click Here to View the Full Review from Fitch Ratings: https://www.fitchratings.com/research/us-public-finance/fitch-upgrades-big-rivers-electric-corporation-to-bbb-outlook-stable-15-08-2022