By Pacific Island Times News Staff
The Guam Power Authority has retained its BBB rating from Fitch Rating Services, indicating stable investment.
“We’re very pleased that GPA has sustained its investment-grade bond rating. This is a confirmation of GPA’s continuous operational improvements, good financial strength of our reserves, and commitment to strengthening its financial health,” said GPA general manager John M. Benavente.
“This was also possible because of the dedicated professionalism and performance of GPA’s workforce, support of the Community, governance of the Consolidated Commission on Utilities (CCU), and the oversight of the Guam Public Utilities Commission (GPUC)." We appreciate the ratepayers continuing to pay their power bill. This is important as GPA moves forward to refinance its bonds stated Benavente.”
Tied into saving ratepayers millions of dollars is GPA’s request for a public hearing on Bill 212-36, the legislation that would allow GPA to refinance its 2012 bond at substantially lower interest rates thereby resulting in the reduction of bond loan payments by about $15 million annually.
The rating agency highlighted some of the following factors in affirming GPA’s rating at “BBB”, Outlook Stable:
§ GPA’s strong revenue defensibility, being the sole provider of electric service on Guam and its strong service area characteristics supported by the U.S. military presence.
§ GPA’s commitment to implement its updated 2021 Integrated Resource Plan (IRP) that looks to improve operating cost flexibility risk profile by maintaining resource sufficiency, improve operating flexibility and reducing operating costs.
§ GPA’s debt profile is considered neutral to the rating. All of the authority’s outstanding electric system revenue bonds are fixed and amortize steadily through2044
“GPA continuously works to improve its creditworthiness and maintain its investment-grade rating. GPA will continue to deliver improvements that benefit all ratepayers and improve the quality of life for all of us who call Guam home,” Benavente said.