Fitch Ratings recently upgraded ratings of Heartland Energy to “A” from “A-,“ with a stable outlook.
“We have continuously improved our financial metrics,” said Heartland Energy CFO Mike Malone. “The rating upgrade shows our diligence has paid off,” he said.
“We have continued to make decisions with the long-term health of our financials and our customers in mind,” Malone said. “The stable outlook reflects Fitch’s expectation for ongoing financial stability, which we take great pride in.”
Fitch upgraded the following ratings of Heartland Energy to “A” from “A-“:
- $4.475 million taxable electric system revenue bonds, series 2018;
- Long-Term Issuer Default Rating
The upgrade to "A" reflects an improved financial profile and declining leverage.
Fitch noted that Heartland Energy has bolstered liquidity and reduced direct debt in recent years through strong operating performance and cash flow.
A significant improvement was noted in leverage, measured as net adjusted debt to adjusted funds available for debt service, improving to 3.8x in 2022 from 7.8x in 2018.
Heartland Energy’s financial position drastically improved after the sale of the company’s portion of the Laramie River Station in 2018. The coal-fired power plant is located in Wyoming.
While Heartland Energy does not plan to issue any debt in the near future, the rating upgrade shows sound decision-making and future focus, Heartland Energy said.
Resource diversity and adequate capacity were factored into a favorable operating risk.
Strong credit quality of Heartland’s customers also factored into the rating, Heartland Energy noted.
Heartland Energy provides wholesale power to public power communities across South Dakota, Minnesota, Iowa and Nebraska.
Based in Madison, SD, Heartland Energy also provides a suite of customer service programs including economic development, energy efficiency, cybersecurity and more.
