Ratings agencies again affirm GRU’s direction with stable ratings  

Press release from Gainesville Regional Utilities

GAINESVILLE, Fla. – All three ratings agencies affirmed GRU’s stable financial outlook this week, supporting GRU’s ongoing plan to reduce debt, maintain lower transfers to the City’s General Fund, manage generating assets, improve liquidity ratios, and offer competitive rates.

The ratings from Moody’s, Fitch, and S&P come as GRU is in the process of issuing $150 million in bonds to fund major construction projects over the next two years, highlighted by Phase II of the Main Street Capacity & Renewal Upgrade.  

GRU requested the credit ratings in July, ahead of August’s upcoming bond sale. The agencies affirmed the following ratings: Moody’s, Aa3; Fitch, A+; and S&P, A. Each reflects a stable outlook.  

The agencies specifically noted the following strengths:  

• Improved residential rate affordability over the past three years, with the combined bill (all five services) now among the lowest in the state. 
• Continued progress under the debt defeasance program, which has reduced overall utility leverage and supported more affordable rates. 
• Reduction in the General Fund Transfer (GRU’s payment to the City’s General Fund), which has contributed meaningfully to lower leverage and strengthened GRU’s financial foundation. 
• Stable customer base and strong local economy. 
• Significantly reduced coal generation profile, lowering future regulatory risk. 
• Solid liquidity metrics. 

The agencies further noted that they will continue to monitor GRU’s liquidity, available cash, affordability, General Fund payments, litigation with the City, and other factors that could impact its credit rating.  

“Overall, the reports were positive and in support of GRU’s strategic plan,” said GRU CEO Ed Bielarski. “S&P did warn that they could lower the rating if they believe the governance issues ‘meaningfully frustrate strategic planning,’ so we’ll be happy to get that all behind us. 

“But we are pleased to receive affirmation of the importance of debt reduction, a lowered transfer to the City’s General Fund, continued movement towards more competitive rates, and the continued betterment of our existing power plants. We’re headed in the right direction.”