Fitch Ratings has, once again, affirmed Illinois Municipal Electric Agency’s long-term debt with an “AA-" rating and a Stable Outlook.
Fitch’s rating and outlook took many factors into account, reviewing Illinois’ clean energy legislation (CEJA) and the impact of EPA power plant standards on IMEA’s long-term obligations and opportunities.
The main component of the rating release details the three rating drivers -- revenue defensibility, operating risk, and financial profile.
IMEA’s revenue defensibility is listed as very strong due to long-term power supply contracts with members, autonomous rate-setting authority, and strong underlying credit quality of the members, IMEA noted in late September.
Operating Risk is listed as strong and is attributed to IMEA’s low operating cost burden and access to a diverse mix of available purchased power and owned generation resources. Fitch states that the final rating driver, IMEA’s financial profile, is “very strong” and credits IMEA’s consistently healthy operating performance, robust liquidity levels, and very low leverage.
"The fact that IMEA has continued to maintain AA- ratings since their upgrade to this top rating tier in 2021 speaks to the sound decisions made by the Board," IMEA said.
The IMEA board is comprised by a representative of each of the 32-member municipalities. They make resource decisions based on resource and energy needs, load forecasts, capacity requirements, and environmental considerations in open and public meetings.
IMEA provides energy to 32 municipal electric systems from all across Illinois.
