...a community-owned and governed utility, created to provide safe, reliable and cost-based electric and wholesale telecommunication services...
P.O. BOX 2148
SHELTON, WA 98584
SHELTON, WA 98584
(360) 426-8255
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Mason PUD News
Moody’s Investor Service Upgrades Mason County PUD No. 3 Bond Rating by Two Classification Levels
Excellent Financial Management Means Second Upgrade in Two Years
Moody’s Investor Service has announced a two level upgrade from A2 to AA3 for the bond rating of Mason County PUD No. 3. The upgraded credit rating is expected to save PUD 3 nearly $1 million in finance costs over the 30-year term of an anticipated bond sale this summer. The PUD was notified of the upgrade by DashenMusselman, the PUD’s financial advisory firm, which has worked with the local utility to improve its bond rating.
“This is the second rating upgrade in two years for the PUD. In fact, to be upgraded two rating levels at once is fantastic,” said Annette Creekpaum, PUD 3 finance manager. “Excellent bond ratings such as the AA tier mean that we can finance projects more easily, a broader range of investors will be interested in our bond sales, and the bonds will be less costly to finance,” she said.
The AA bond rating tier is used to identify bonds which are judged to be of high quality by all standards. Together with the prime group they comprise what are generally known as high-grade bonds.
PUD 3 is considering the sale of bonds in July for several capital projects, including the Johns Prairie operations center; Mason substation rebuild; and potential relocation of PUD facilities related to the 1.5 mile Belfair SR 3 improvement project. The sale is expected to be less than $50 million for a 30-year term.
Because of the timing of the issue and the maturing of current bonds issued by the PUD, it isn’t expected that the bond sale for the operations center will change debt service in the long term, and therefore will not have an impact on utility rates.
“Our financial advisory team told us that PUD 3’s five straight Government Finance Officers Association awards for its annual reports and the effort we made to obtain those awards, along with over 30 years of excellent audits from the Washington State Auditor’s Office, figured prominently in our bond ratings success,” said Creekpaum.
“I’m very pleased that PUD 3 has been recognized for its financial strength by this bond rating upgrade,” said Wyla Wood, PUD manager. “This is a team accomplishment of which all our employees can be proud.”
Moody's Investors Service is among the world’s most respected and widely utilized sources for credit ratings, research and risk analysis.
Mason County PUD No. 3 is a locally controlled public utility that provides electricity to nearly 33,000 customers in most of Mason County and small portions of Kitsap and Grays Harbor Counties. PUD 3 also provides wholesale telecommunications services through a fiber optic network.