Standard & Poor’s issues ‘stable’ rating for Buckeye Power

Standard & Poor’s has affirmed its A-/Stable credit rating for Buckeye Power and Buckeye Power Generating LLC.

“The stable outlook reflects our view that after a prolonged period of week results, financial metrics for fiscal 2013 support the rating,” the S&P report stated. “Buckeye’s projections indicate improvement in the next several years.”

The report said Buckeye Power’s credit strengths included the long-term wholesale power agreements extending through 2057, debt levels on average with peers and good liquidity.

The report also noted that Buckeye has no need for additional generation in the foreseeable future and has completed the bulk of capital spending for environmental upgrades.

“As such, we expect debt ratios will improve,” the report stated.

The financial strength of Buckeye’s member systems was also noted in the report.

“We believe member financial performance is strong across the board,” the report stated.

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