MEAN completes bond refunding, earns high ratings marks

Two bond rating agencies issued positive ratings regarding the Municipal Energy Agency of Nebraska’s (MEAN) recent refunding of $38.7 million of outstanding power supply system revenue 2012 Series A bonds.

S&P Global Ratings assigned its ‘A’ long-term rating to the 2022A power supply system refunding revenue bonds. S&P also affirmed its ‘A’ long-term rating and underlying rating on MEAN’s bond obligations outstanding. The rating outlook is stable.

Fitch ratings assigned an ‘A+’ rating to the 2022A refunding revenue bonds and affirmed MEAN’s $134.5 million power supply system refunding revenue bonds. The rating outlook is stable. 

The bond refunding will save MEAN’s long-term power supply participants $8.5 million over the life of the bonds.

Fitch’s key ratings drivers for MEAN included: 

  • Strong revenue source characteristics
  • Low operating cost and diverse power supply, and
  • Strong financial profile, including healthy liquidity metrics

“MEAN’s revenue defensibility is bolstered by the utility’s long-term, all-requirements contracts with its schedule M members and MEAN’s autonomous rate-setting ability, both of which Fitch views favorably,” stated Fitch’s ratings commentary. “Moreover, MEAN continues to provide a low cost and diversified power supply to its members.”

MEAN’s continued positive bond ratings result in overall lower bond interest rates which benefits MEAN's long-term power supply participants.