New Study Finds Credit Quality of G&T Coops on the Rise
Kroll Bond Rating Agency recently released the results of a multi-month study related to its development of a new rating methodology for rural generation and transmission (G&T) cooperatives. The study found that the credit quality and strength of G&Ts have improved significantly over the past 20 years. The findings also indicated that many market participants give disproportionate weight to the financial metrics of G&Ts while often failing to give proper weight to the strong security features which they possess. The study said that long-term member contracts, minimal regulatory interference with rate increases, and the G&T coops’ position as monopoly providers of an essential service contributed to the credit quality of G&Ts. To access the full rating methodology from Kroll, click here (free registration required).
