Fitch Affirms ‘A’ Rating on DEMEC Revenue Bonds; Outlook Stable
Fitch Ratings has affirmed the ‘A’ rating on the following obligations of the Delaware Municipal Electric Corporation (DEMEC):
–Approximately $48.1 million electric system revenue bonds, series 2011.
The Rating Outlook is Stable. Fitch’s affirmation of the rating is supported by the credit quality of the largest participants in DEMEC’s Warren F. Beasley Power Station project (Beasley Project, or the project) and the strong contractual framework, which includes the take-or-pay power sales contracts (PSCs) that secure the electric system bonds. The purchaser credit quality assessment broadly reflects the very strong financial and operating profiles of the largest participating utilities, including Newark and Milford, who benefit from independent rate setting authority, service area characteristics consistent with national and regional averages, and little or no system debt. The operating profile of the Beasley Project is further assessed as strong based on the project’s strategic location on the Delmarva Peninsula and its contribution to each utility’s capacity requirements, but is less of a consideration in the final rating.