Public Power Daily
Fitch Ratings on August 25 assigned a ‘BBB+’ Issuer Default Rating to Marin Clean Energy (MCE), an upgrade of the California community choice aggregator’s previous rating of BBB.
Among the reasons for the upgrade are MCE’s increase of available cash on hand from 80 days to 160 days, as well as almost doubling MCE’s available liquidity over the past year.
The BBB+ rating takes into consideration MCE’s strong financial profile and successful management of its load during COVID-19 shifts.
MCE noted that it was the first CCA to receive an investment-grade credit rating, with a Baa2 Issuer Rating issued by Moody’s in May 2018, as well as the first to receive a second from Fitch Ratings in August 2019.
Fitch’s upgraded investment-grade credit rating generally reflects the ability of MCE to meet its financial obligations. MCE has no direct debt outstanding.
The rating also reflects MCE’s Board decision made in November 2019, to increase reserves of cash onhand to 240 days.