The Lansing Board of Water & Light has again received an excellent bond rating from the respected rating agency Standard & Poor’s.
Standard & Poor’s affirmed the BWL’s AA-rating, citing the company’s sound financial metrics and utility rates that are “well below the state average.”
BWL General Manager J. Peter Lark remarked on the S & P rating: “While Michigan’s economy is in the grips of a recession, the fact that the BWL’s financial underpinnings are strong is a tribute to our employees and our governing Board of Commissioners. It’s all about teamwork. Our Standard & Poor’s AA-rating underscores the value this ‘Hometown People’ company places in maintaining a strong financial position and competitive vigor.
“Further,” Lark added, “ this excellent rating punctuates our ongoing efforts to control costs and address debt service.”
Standard & Poor’s rating report said the BWL had “adopted responsive rate increases without compromising competitive positioning. The board’s financial position continues to be strong and stable.”
Bond ratings are independent assessments of the relative credit risk associated with purchasing and holding a particular bond, and the likelihood that the obligation will be repaid on time and in full.
Bond ratings of BBB/Baa and above are considered investment grade. The highest bond rating by Standard & Poor’s is AAA.
The BWL’s bond ratings are considered excellent by industry standards.
The BWL is Michigan’s largest public utility and the 30th largest public utility in the United States.
