GRDA bond issue gets rating news from Moody’s, Fitch

Vinita – A $91.3 million Grand River Dam Authority bond issue will go forward later this month with an “A1” rating from Moody’s Investor Services, and an “A+” rating from Fitch Ratings. Both agencies, which assigned the ratings in early August, also gave the GRDA issue a “stable” outlook.

“Proceeds from this bond issue will be used to refund a previous issue,” said GRDA Chief Financial Officer Eddie Rothermel. “We’re pleased that we can move forward with this issue, carrying these strong ratings from Moody’s and Fitch.”

Pricing will take place on August 8 and 9.

According to Moody’s, the stable outlook reflects “expectations that GRDA’s cost competitiveness and improved financial profile will be maintained as its industrial load requirement increases.” Meanwhile in its findings, Fitch noted that GRDA’s “financial metrics continued to strengthen in 2016” with GRDA’s financial projections through 2021 showing a strong debt service coverage.

The ratings on the latest bond issue are consistent with GRDA’s trend of improvement in overall credit ratings, dating back to 2005. Today, the Authority maintains the highest credit ratings in its history from Moody’s and Fitch.

“This trend affirms the effort that our board, staff and workforce have put into making GRDA a stable, efficient and financially sound agency,” said GRDA Chief Executive Officer Dan Sullivan. “We’re pleased to move forward with a bond issue that will help to save our ratepayers money.”

Headquartered in Vinita, GRDA is Oklahoma’s state-owned electric utility; fully funded by revenues from electric and water sales instead of taxes. Each day, GRDA strives to be an “Oklahoma agency of excellence” by focusing on the 5 E’s: electricity, economic development, environmental stewardship, employees and efficiency.