The Guam Power Authority's revenue bonds were upgraded from BBB- to BBB with a stable outlook by Fitch Ratings Services, which could result in lower costs to ratepayers.
“This improved investment grade rating is a positive confirmation of GPA’s continuous operational improvements and commitment to strengthen its financial health,” said GPA General Manager John M. Benavente.
He added the upgrade of bond ratings signifies lower borrowing interest rates for GPA and lower cost to ratepayers.
When assigning the upgrade, the rating agency noted the 1% steady growth of customer accounts since 2014, tourism and the U.S. military's contributions to the island's economy and electricity demand on the island, and the agency's commitment to implement its 2016 Integrated Resource Plan, among other factors.
Benavente said the agency has been focused on improving system reliability and operational efficiency.