Fitch jolts Tri-State Generation

Fitch Ratings said it downgraded Tri-State Generation and Transmission Association, Inc.’s long-term issuer default rating, its $1.86 billion of first mortgage bonds and notes series 2010A, 2014B and 2016A and its $200.5 million of Springerville pass-through certificates, series 2003B to BBB+ from A-

“The rating downgrade reflects Fitch's expectation of weaker rate flexibility and financial performance as a result of FERC's decision to reject Tri-State's proposed rate schedule, which included a formula rate and true-up mechanism and would have resulted in a roughly 6% rate increase. Tri-State's inability to implement planned rate increases is expected to weaken operating income, funds available for debt service (FADS) and leverage metrics through 2024, and potentially beyond,” the agency said in a press release.

The outlook is negative.

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