S&P rates Oglethorpe Power bonds BBB+

S&P said it assigned its BBB+ rating to Oglethorpe Power Corp. proposed $500 million first mortgage bonds, series 2018A. The outlook is negative.

At the same time, S&P affirmed the following ratings assigned to the utility and its obligations: the BBB+ issuer credit rating and senior secured debt ratings, each with a negative outlook; the A-2 short-term rating on Oglethorpe's $1 billion commercial paper program; and the AA-/A-1 ratings on three series of the utility's debt obligations that S&P rates using its joint support rating methodology to reflect the benefits of bank credit support.

Oglethorpe will use bond proceeds to finance a portion of its interest in the construction of the Georgia Vogtle nuclear plants.

“The ratings reflect our opinion that Oglethorpe and its co-owners in the Vogtle nuclear projects face the potential for material cost escalations as the projects proceed,” said S&P credit analyst David Bodek in a news release.

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