FOR IMMEDIATE RELEASE
Contact: Melissa Krause
Chief Strategic Communications and Security Officer
830.629.8440 | email@example.com
(New Braunfels, TX – January 12, 2024 – On January 3, 2024, Moody’s Investors Service (Moody’s) assigned an Aa1 rating to New Braunfels Utilities (NBU) for its Utility System Revenue and Refunding Bonds, Series 2024. The Rating Outlook is stable.
At the same time, Moody’s maintained the Aa1 rating on NBU’s outstanding senior lien revenue debt. Moody’s noted in its report, “The Aa1 senior lien revenue rating reflects NBU’s large scope of operations, healthy debt service coverage levels, ample liquidity, and ongoing economic expansion within the service area.” Moody’s also added, “The outlook is stable, reflecting the utility’s healthy operations that will continue to be guided by strong management practices.”
According to NBU’s Chief Financial Officer, Dawn Schriewer, “NBU’s strong bond rating allows us to issue debt obligations at lower interest rates, potentially saving millions of dollars for the organization and its customers.”
While NBU anticipates doubling its total debt outstanding in annual issuances over the next five years, Moody’s acknowledged the utility’s strategic approach to managing this growth. New Braunfels Utilities’ commitment to bolstering its power stabilization fund and maintaining rates sufficient to produce 2.4 times coverage ensures that debt service coverage remains satisfactory for the Aa1 rating level.
Moody’s noted strong revenue growth supported by customer expansion and annual rate adjustments will offset additional debt, contributing to the stable outlook.
Moody’s expects NBU’s creditworthiness to remain resilient, guided by the utility’s robust financial policies and strategic initiatives to ensure the continued delivery of reliable and high-quality services to its customers.
About New Braunfels Utilities:
New Braunfels Utilities (NBU) strives to be a trusted community partner dedicated to excellence in service and is one of 2,000 community-owned, nonprofit public power electric utilities in the nation. With a mission of strengthening our community by providing resilient essential services, NBU is governed by a Board of Trustees comprised of residents appointed by the New Braunfels City Council. New Braunfels Utilities provides electric, water, and wastewater services. Utility revenues are continually invested back into the systems of the customers, which benefits the community. New Braunfels Utilities makes an annual transfer to the City of New Braunfels, which in turn helps to pay for services such as fire, police, and parks. Follow NBU on Facebook at facebook.com/newbraunfelsutilities, on X at @nbutexas, and to learn more, visit nbutexas.com.