Moody’s Affirms A2 rating on DEMEC’s Beasley Project Revenue Bonds
Moody’s Investors Service has affirmed the A2 rating on Delaware Municipal Electric Corporation’s (DEMEC) outstanding Beasley Peaking Power Station(Beasley) project revenue bonds. The outlook is stable.
Rating rationale was based on the credit quality of the seven municipal electric systems, solid historical operating and financial performance, escpecially with respect to the maintenance of strong debt service coverage ratios, in addition to DEMEC’s, Beasley’s JAA owner, strategy to meet peak demand growth while minimizing negative impacts of regional capacity market volatility. The rating also considers the importance of Beasley to DEMEC’s power supply strategy and the pronounced integration of Beasley within DEMEC’s operations, especially with respect to accessing DEMEC’s liquidity.