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Fitch boosts SMUD’s bond rating

Fitch, one of the nation’s leading credit-rating agencies, is upgrading its opinion of the Sacramento Municipal Utility District’s (SMUD) credit worthiness, raising the utility’s rating from ‘A’ to ‘A+’. The upgrade is particularly noteworthy considering the current economy and the falling ratings of other entities.

The rating upgrade, as detailed by Fitch, reflects operational improvement and financial improvement achieved over the past two years. Fitch noted that SMUD has increased its debt service coverage, boosted liquidity and placed itself on a much sounder financial footing to face the renewable and green house gas mandates in California.

The boost in SMUD’s credit rating should give investors added confidence when they consider buying SMUD bonds, and as a result SMUD could pay lower interest rates, which directly benefits SMUD customers. SMUD currently has an ‘A+’ rating from Standard & Poor’s and an ‘A1’ rating from Moody’s.

As the nation’s sixth largest publicly owned utility, SMUD has been providing low-cost, reliable electricity for 65 years to Sacramento County and a small portion of Placer County. SMUD is a recognized industry leader and award winner for its innovative energy efficiency programs, renewable power technologies, and for its sustainable solutions for a healthier environment. For more information, visit smud.org.

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