WHITE PLAINS – August 4, 2015 – (RealEstateRama) — Fitch Ratings today affirmed its highest rating, F1+, for the New York Power Authority’s $1.2 billion maximum commercial paper program and $200 million extendable municipal commercial paper notes (EMCP).
The rating agency praised NYPA, the nation’s largest state-owned public power authority, for its “history of solid financial and operating performance,” and cited a strong balance sheet and “healthy cash flow and debt service coverage.”
Fitch’s F1 rating is given to borrowers who have the “strongest intrinsic capacity for timely payment” of their debt. A plus is added for companies that have “exceptionally strong credit.”
Commercial paper is unsecured, short-term debt typically issued for the financing of accounts receivable and to meet short-term liabilities. High ratings from an agency like Fitch lower the amount of interest ultimately paid out.
As of July 25, NYPA had $482 million of commercial paper and $49.2 million of EMCP notes outstanding. More on the Fitch rating of NYPA can be found here.
About NYPA:
NYPA is the nation’s largest state public power organization, through the operation of its 16 generating facilities and more than 1,400 circuit-miles of transmission lines. NYPA uses no tax money or state credit. It finances its operations through the sale of bonds and revenues earned in large part through sales of electricity. More than 70 percent of the electricity NYPA produces is clean renewable hydropower. For more information visit www.nypa.gov and follow us on Twitter @NYPAenergy, Facebook, Instagram, WordPress, and LinkedIn.
Contact:
Steven Gosset | Steven.Gosset (at) nypa (dot) gov | (914) 390-8192
