Moody's rates Entergy Arkansas bonds A3

Moody's Investors Service said it assigned a senior secured rating of A3 to Entergy Arkansas' $225 million of first mortgage bonds due 2026, to be used to refinance outstanding first mortgage bonds.

Moody's affirmed all senior secured debt at A3, senior unsecured debt and issuer rating at Baa2, and preferred stock at Ba1.

The outlook is stable.

Ratings reflect the below average regulatory environment in Arkansas, although its most recent rate case outcome was an improvement over its last rate case outcome in 2007, the agency said.

Regulatory risk at Entergy Arkansas has been largely offset by financial and cash flow coverage metrics that have historically been strong for its rating, the agency added.

The rating also considers uncertainty over the utility's continued participation in the Entergy system agreement, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.