Berkshire Municipal Wind Cooperative Corp. Revenue Bond Rating Raised To #A# From #A-#

Stocks and Financial Services Press Releases Tuesday November 18, 2014 08:47
NEW YORK--18 Nov--Standard & Poor's

NEW YORK (Standard & Poor's) Nov. 17, 2014--Standard & Poor's Ratings Services has raised its rating on Berkshire Municipal Wind Power Cooperative Corp.'s (Berkshire, or the cooperative) wind project revenue bonds to 'A' from 'A-'. The outlook is stable. "The upgrade reflects our assessment of strengthened credit quality of the project participants," said Standard & Poor's credit analyst Jeffrey Panger.

The rating primarily reflects the following: A take-or-pay power sales contract (PSC) between Berkshire and the Massachusetts Municipal Wholesale Electric Company (MMWEC), and take-or-pay power purchase agreements (PPAs) between MMWEC and 14 of MMWEC's 28 member municipal light departments (the participants, or participating members). The project is fully subscribed.The PPAs require up to a 25% step-up for nondefaulting participants within the project, if other participants default.Standard & Poor's criteria for rating joint action agencies with fewer than 25 participants, which dictate that we assess the credit quality of the participating members, focusing on the weakest credit profile among the strongest participants aggregating to 80% of the project (that is, satisfying the 25% step-up).

The bonds are secured by revenues derived from a take-or-pay PSC between Berkshire and MMWEC. Concurrently, MMWEC has entered into take-or-pay PPAs with 14 participating member municipal light departments. Under the PPAs, the participating light departments are obligated to make payments sufficient to cover all of MMWECs costs related to the project, including 110% of the amount required for debt service.

The obligations under the PPAs are considered operating expenses of the participating light departments. Under the PSC, MMWEC is obligated to make such payments to the cooperative. We believe that it is important to note that the PSC and PPAs are take-or-pay obligations that are not conditioned upon performance of the cooperative under the PSC. The stable outlook reflects the diversity of the participating membership, their rate-setting autonomy, and the strength of the take-or-pay obligations under the PSC and the respective PPAs.


Latest Press Release

mai welcomes real estate developer CMC on November 19

Market for Alternative Investment (mai) will list Chaoprayamahanakorn pcl, a leading real estate developer onNovember 19, under the ticker symbol "CMC". The company has a market capitalization at its initial public offering (IPO) of THB 3.00 billion...

KTC - Chilito Mexican Grill - Farm Factory provide members special privileges for payments made using QR Pay in the KTC Mobile app.

Mrs. Pranaya Nithananon, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, provides KTC VISA and KTC MasterCard credit card members who make payments through KTC QR Pay in the "KTC Mobile" app worth Bt. 300 or more...

Photo Release: KBank opens new flagship branch and THE WISDOM Lounge at ICONSIAM

Mr. Wirawat Panthawangkul (3rd from left), KBank Senior Executive Vice President, and Ms. Chadatip Chutrakul (4th from left), Director of ICONSIAM Co., Ltd., and Chief Executive Officer of Siam Piwat Co., Ltd., participated in the opening ceremony of...

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Related Topics