Paducah Power's Bonds Receive Upgraded Ratings

Fitch Ratings has revised its outlook for Paducah Power System’s utility bonds from “Stable” to “Positive” while affirming the ‘BBB’ rating given in 2014.

In making the change, Fitch cited stronger cash flows that have led to Paducah Power’s stable financial performance, forward contractual sales and the improved operating performance of the Prairie State Generating Plant. Fitch also noted the utility’s 156 days of cash on hand.

“This is evidence of the slow and steady progress we’ve made in the past three years,” said Paducah Power System General Manager Dave Carroll. “They recognized our improvements and gave us hope for an upgrade in our bond rating in the future.”

In its decision, Fitch stated that PPS’s ability to maintain a financial performance in line with its forecast could lead to a one-notch rating upgrade.

“We believe an upgrade is possible with continued diligence toward improving our finances and finding a way to maximize our generating assets,” said PPS Board Chair Hardy Roberts.