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S&P affirms Corn Belt Power’s ‘A’ rating  

S&P affirms Corn Belt Power’s ‘A’ rating

Corn Belt Power News

Standard and Poor’s Global Ratings (S&P) affirmed its “A” rating of Corn Belt Power Cooperative in July, citing several credit attributes of the cooperative. In its rating report, S&P gave Corn Belt Power a “stable outlook,” indicating it does not expect to change the rating during the two-year outlook period.

The rating reflects these credit strengths of the cooperative:

• A long-term contract with Basin Electric Power Cooperative extending through 2075, which enhances operational stability • Long-term contracts with its nine member cooperatives extending through 2075

• Rate setting autonomy for Corn Belt Power and each of its member cooperatives

These strengths, S&P mentions, are partially offset by these factors:

• Lower financial metrics, offset partially by stability and lower risk

• A concentrated customer base, with roughly 31 percent of the cooperative’s energy sales attributable to the system’s top 10 customers, most of which are ethanol refineries

• High reliance upon coal-fired generating units for about two-thirds of the cooperative’s total power supply

Karen Berte, senior vice president, finance and administration, Corn Belt Power, comments, “I am pleased S&P affirmed Corn Belt’s A rating. We take the rating process seriously and it is important to us that the rating agencies thoroughly understand Corn Belt Power. This rating affirmation shows Corn Belt’s strong financial condition, which is very important as we continue to work to support the needs of our members.”

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