Days after global financial ratings powerhouse Moody's upgraded the Port Authority of Guam's ratings outlook, the ratings agency has upgraded Guam Power Authority's ratings outlook from 'negative' to 'stable.'
The following is from GPA:
In a May 13, 2021 rating report, Moody’s Investors Service (Moody’s) affirmed the Baa2 rating assigned to the Guam Power Authority's ("GPA") senior revenue bonds and changed the outlook to stable from negative.
The affirmation of the Baa2 rating and outlook change to stable follows Moody's rating action on the Government of Guam's general obligation bonds rating which was affirmed at Ba1 with a stable outlook on May 4, 2021. Moody’s also stated GPA's Baa2 rating reflects its strong position as the sole provider of electricity to residential customers on the island of Guam and to the US military in the report.
“We welcome this positive affirmation and improved rating of GPA’s credit-worthiness, which is good news for all ratepayers,” said GPA General Manager John M. Benavente, P.E.
“As Moody’s has noted, there are many concurrent challenges facing GPA today. We will continue our work across all utility areas, and with governing leadership and bodies to bring the energy solutions for Guam forward, so GPA remains financially strong. This affirmation of bond rating will translate to optimal interest rates, as GPA heads to the bond market to refinance and lower its borrowed costs,” Benavente concluded.