GVEC, a cooperative that provides reliable and affordable electricity, internet, HVAC, solar and battery storage, and electrician services is proud to announce that it has received a one-notch upgrade to its rating from Standard & Poor’s (S&P). This upgraded rating reflects GVEC’s strengthened financial position, its robust energy hedging strategy and underscores its commitment to providing cost-effective solutions to its valued customers while supporting grid stability.
In a recent press release, S&P Global Ratings stated it raised its issuer credit rating to “A” from “A-“ on GVEC and its underlying rating (SPUR) to “A-1” from “A-2” on GVEC’s commercial paper notes citing “the outlook, where applicable, is stable.” “The raised ratings reflect our opinion of GVEC’s commitment to maintaining a high level of liquidity through its lines of credit, implementation of rate increases to maintain sound financial performance, and more robust procurement strategy that shielded the utility’s operational and financial performance during peak winter and summer demand in 2022 and 2023,” said S&P Global Ratings credit analyst Alexandra Rozgonyi.
The upgraded financial rating from S&P further positions GVEC as a strong financial counterparty as it accesses the capital and power supply markets. This strengthened rating helps to ensure lower costs borrowing and more attractive power supply transactions. By leveraging its improved creditworthiness, GVEC can invest in infrastructure upgrades, and innovative technologies that enhance the reliability and efficiency of the electrical grid and expand its services. These investments not only ensure a more resilient and sustainable energy future but also result in significant cost savings for its cooperative members over time.
Overall, high credit ratings from reputable ratings agencies like S&P open doors that expand opportunities to access the short and long-term financial markets and encourage lenders to compete for the Cooperative’s business. Utilizing these markets as part of a long-term debt strategy ultimately helps keep GVEC’s rates lower and contributes to their goal of maintaining affordable service for its membership.
“GVEC is pleased to receive this recognition from S&P, which reflects our ongoing commitment to financial stability, grid reliability, and customer-centric operations,” said GVEC General Manager and CEO Darren Schauer. “This improved rating not only validates our efforts but also confirms GVEC remains a solid, financially strong cooperative.”
