PLYMOUTH BOND RATING UPGRADED
Plymouth Utilities rating to increase two steps from A2 to Aa3
Plymouth, WI – On Wednesday, March 6, 2019, Moody’s Investors Service upgraded Plymouth Utilities bond rating two steps from A2 to Aa3. In addition, Moody’s affirmed the existing Aa3 rating on the City of Plymouth. The City of Plymouth and Plymouth Utilities (enterprise fund of the City) have the same bond rating of Aa3. The rating upgrade represents a material upgrade for Plymouth Utilities, which is an enterprise fund of the City of Plymouth, for the combined operations of the electric, water, and sewer utilities.
The last time the City experienced an upgrade to its bond rating was in 2005 when Plymouth Utilities bond rating was improved to A2. The current upgrade was primarily driven by the utility’s improving debt service coverage, liquidity, and modest debt ratio with no immediate plans for debt. The utility is an enterprise of the City of Plymouth (Aa3) and the general obligation (GO) credit quality was another factor in the utility’s rating along with a diverse energy portfolio through WPPI Energy.
Mayor Pohlman said that the bond rating was “representative of city staff, the Mayor’s Office, the Finance & Personnel Committee, and the full Common Council working together. We have focused on sticking to our priorities while having a balanced budget and financial position that is sustainable. In 2010, the City studied whether it should sell the utility and the resounding conclusion was no. Since then, we have focused on improving our position from both a financial and operational perspective.”
“This is a proud moment for the City of Plymouth and Plymouth Utilities and is based on strong fiscal management and long-term planning. Several years ago, we identified the vision of “Your Utility. Your Government. Working Together.” Priorities included de-levering, cash financing, using GO capacity to support the utility when appropriate, updating rates, and sharing resources between the city and utility. All of these things over time helped with this upgrade,” City Administrator/Utilities Manager Brian Yerges said.