Flooding and windstorm damage will not have a negative credit impact on the three largest public power districts in Nebraska, according to a Standard & Poor's Corp. comment in yesterday's edition of Credit Week Municipal.
"The impact appears manageable and [Standard & Poor's] sees no deterioration of credit quality as a result of the recent weather conditions," the rating agency said.
Lincoln Electric System, Nebraska Public Power District, and Omaha Public Power District have "suitable" cash reserves to manage the financial impact of flooding and windstorm damage, Standard & Poor's said.
The rating agency said all three districts have strong financial margins and ample rate flexibility to offset projected decreases in operating revenues in fiscal 1993 because of weather developments.
The rating agency maintains an AA rating on $247 million of Lincoln Electric System electric system bonds, an AA-plus rating on $47.5 million of Lincoln Electric system prior lien bonds, an A-plus rating on $1.48 billion of Nebraska Public Power District debt, and an AA rating on $1.03 billion of Omaha Public Power District debt.
Last week, Moody's Investors Service said that the Nebraska Public Power District was managing weather-related developments "quite well at this time."