Moody’s Ratings Service has assigned an “Aa2” rating, its third highest, to the Los Angeles Department of Water and Power (LADWP) for its planned $500 million revenue bond sale in February. The rating recognizes “strong supportiveness” by Los Angeles elected officials for the nation’s largest municipal (muni) utility, which is shifting from a reliance on out-of-state coal-fired generation sources to more natural gas- and renewable-based power sources. Moody’s said the rating recognizes the benefit of LADWP’s size, “diverse and competitive power supply,” and ownership and operation of a transmission network that amounts to 25% of California’s grid. LADWP has long owned its gas reserves through a purchase it led with other Southern California munis a decade ago.
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Three days after Moody’s Investors Service changed its outlook on Kinder Morgan Inc. (KMI) debt to “negative” from “stable,” the company said it “…will construct its 2016 plan to maintain an investment grade rating with all three [credit rating] agencies.”
Actions by Standard & Poor’s Ratings Services (S&P) announced Tuesday highlight the value of fee-based contracts for midstream energy companies, particularly when commodity prices are as depressed as they have been of late.
Chesapeake Energy Corp.’s decision to launch a record $3 billion bond offering to help refinance debt drew positive remarks from two of the largest credit ratings agencies.
Citing the quality of Range Resources Corp.’s reserve base, Moody’s Investors Service on Thursday upgraded the Houston-based company’s corporate family rating to “Ba1” from “Ba2” and its senior subordinate rating to “Ba2” from “Ba3.”
A report by the United Kingdom’s University of Nottingham indicates that public opinion in the country is beginning to shift in favor of unconventional natural gas development, which uses hydraulic fracturing (fracking).
Natural gas prices continue to be volatile, but most signs point to favorable rating trends for the U.S. oil and natural gas sector for the rest of this year and into 2008, according to an industry report card by Standard & Poor’s (S&P).