Moody’s has assigned a Baa1 rating to GIPA’s power system revenue bonds (series 2008A, Series 2008B), which are valued at approximately US$7.25M and US$2.5M, respectively.
In addition, the underlying rating on GIPA’s approximately US$9.7M revenue bonds have been upgraded to Baa1 from Baa2, and the outlook given as stable.
Moody’s cited GIPA’s financial management, liquidity, competitive power costs, relicensing risk and efforts to boost system reliability as being among the reason for the positive view taken on GIPA.
The agency said the proceeds from the bond issues, due to be priced 12 June, to redeem US$2.5M of debt and fund a debt service reserve, and boost generation capacity and infrastructure.
GIPA has a 6MW run-of-river plant on the Hudson river that is due for re-licensing in 2011. The plant has been operating at or above its nameplate capacity.
The company also wants to acquire and develop the 100MW Cohoes Fall plant, which if successful would be financed by fixed long-term contracts with upstate New York customers.
It also has a long term purchased power contract with New York Power Authority (NYPA) to 2025.
In addition, GIPA receives supplemental power from New York Municipal Power Agency (NYMPA). That contract expires in 2013.
