S&P gives Southern Illinois Power notes BBB

Standard & Poor's said it assigned its BBB long-term rating to Southern Illinois Power Cooperative Inc.'s $36 million 5% senior secured notes due June 15, 2025; $324 million 5.75% senior secured notes due June 15, 2040; and $55 million 5.5% senior secured notes due March 15, 2041.

The notes amortize annually.

At the same time, the agency affirmed the company’s BBB issuer credit rating.

The outlook is stable.

"The stable outlook reflects our expectations of adequate debt service coverage, the security that long-term wholesale power contracts provide, and a significantly residential customer base," S&P credit analyst David Bodek said in a news release.

"However, in our view, the amalgam of projections of thin excess margins, Prairie State Energy Campus' weak start-up performance, the uncertain tenor of energy sales to Norris, and the specter of carbon regulations constrain the rating's upward potential during our two-year outlook horizon," Bodek added in the release.

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