S&P, Fitch affirm New York Power Authority’s credit rating

S&P Global Ratings and Fitch Ratings have both affirmed their strong ratings on New York Power Authority’s (NYPA) long-term bonds and short-term debt, NYPA reported on June 15.

NYPA said that the ratings align with New York State’s overall positive fiscal outlook, as announced by Governor Andrew Cuomo June 14.

 S&P and Fitch both affirmed an AA rating for more than $1.6 billion of NYPA senior revenue bonds as well as an A1-plus rating and F1-plus rating for the Power Authority’s subordinate lien series 1-3 commercial paper and its series 1 extendible municipal notes.

S&P noted that its positive rating reflects “favorable leverage metrics even after the utility added $1.1 billion of debt in 2020,” referring to NYPA’s historic green bond sale, which won NYPA Bond Buyer’s Deal of the Year 2020.

Fitch noted that “NYPA’s financial profile remains strong” and it “benefits from very strong rate flexibility.”

 “These ratings reflect NYPA’s financial strength and stellar credit metrics, and our commitment to maintaining them through this unprecedented pandemic,” said Gil Quiniones, NYPA president and CEO, in a statement. “They ensure NYPA is able to continue leveraging the capital markets so that we can continue to provide affordable, reliable, and green electricity in support of the state’s transition into a clean energy economy.”