Fitch Ratings and Moody's Ratings Award IMEA Consecutive Top-Tier Ratings
Date Posted: 2025-07-22
Fitch Ratings and Moody's Ratings, two of the “big three” national credit rating agencies, recently notified the Illinois Municipal Electric Agency (IMEA) that their long-term debt was affirmed with exemplary ratings. Fitch affirmed in late April 2025 that IMEA was awarded an “AA- rating with a Stable Outlook” and Moody's affirmed in June 2025 that IMEA was awarded an “A1 Rating with a Stable Outlook.”
Both credit rating agencies reviewed the overall credit quality of the current IMEA bonds, as well as the rating for the 2025A bond refinancing that IMEA staff is pursuing later this year. The refinance is of their last remaining Power Supply System debt that will be paid off by 2035.
When an entity issues bonds, having a better rating equates to better terms for borrowing, so the rating agencies' affirmation will serve the Agency well in the refinancing process. IMEA estimates that refinancing will save millions on interest payments. That savings will directly benefit all 32 IMEA member municipalities.
On Moody's review, IMEA's long track record of solid financial metrics was noted as a key factor supporting IMEA's credit quality. Moody's also recognized the benefits of IMEA's accelerated debt amortization profile relative to our peers, which hastens debt repayment. The credit rating agency added that IMEA's transition to a more diverse power supply is being accomplished while still providing members with economical and reliable power.
Like Moody's, Fitch's rating and outlook took many factors into account. The layout of Fitch's rating release differs in that it categorizes and details three rating drivers - revenue defensibility, operating risk, and financial profile.
The fact that IMEA has continued to maintain exemplary credit ratings from the top credit rating agencies speaks to the sound decisions made by the Board as advised by IMEA staff. The IMEA Board is comprised of a representative of each of the 32 member municipalities. They make resource decisions based on resource and energy needs, load forecasts, capacity requirements, and environmental considerations in open and public meetings.