Bond ratings and your PUD: see the bigger picture
March 7, 2018
The Sentinel reported last week that the bond rating firm, Moody’s Investor Service, downgraded our PUD financial ratings from A2 to A3. While we had hoped it would not happen, we expected it.
The PUD utilizes two ratings agencies, Fitch and Moody’s. Fitch has maintained our rating at A- since 2009. Moody’s however, upgraded us in 2011 from A3 to A2, which was unexpected. Moody’s A3 rating is the equivalent of Fitch’s A- rating, so the upgrade meant that Moody’s rated us one level higher than Fitch. Moody’s has tended to judge us more in the traditional electric service world, rather than the wholesale market world. By re-evaluating that rating and downgrading us this past w...