BURLINGTON — Credit rating agency Moody’s Analytics upgraded its rating for the city’s electric utility in its most recent report this month.
The Burlington Electric Department’s rating upgraded from Baa2 to Baa1 in a Nov. 9 report for the rating agency with a stable outlook going forward. Moody’s scale for rating the creditworthiness of debt ranges from a top rating of Aaa to the lowest C, with the numeral 1 through 3 affixed to those ratings as an additional gradient.
Moody’s cites the shift to a more diverse power supply, competitive rates and an improving local economy as some of the factors that led to the upgrade. The rating agency also recently upgraded the City of Burlington’s credit rating, citing the regional economy as a factor as well.
A focus on expanding renewable energy use and efficiency measures also played a role in BED upgrade, according to the report.
“This credit rating upgrade validates BED’s efforts to source renewable power, expand efficiency programs, and restructure the organization to succeed in the changing utility landscape,” said Mayor Miro Weinberger in a statement.
The City Council recently approved a restructuring of the utility intended to “flatten” its management structure while also reducing the number of total staff from 133 to 120 through a voluntary buyout program.
“Strong financial management is part of BED’s continued commitment to the customers we serve,” said Neale Lunderville, BED General Manager. “As this upgrade demonstrates, Moody’s understands the importance of adapting to a changing energy market.”
