Fitch: Overreliance on Natural Gas Could Hurt Ratings

Sanchez, Humberto
June 2003
Bond Buyer;6/5/2003, Vol. 344 Issue 31650, p34
Trade Publication
Despite a generally favorable outlook for the public power sector, rating downgrades could be in the offing due to municipal utilities' increased dependence on natural gas for power generation as well as other liquidity concerns, Fitch Ratings Inc. analysts said on June 4, 2003. The reports warn that an expected surge in demand for natural gas over roughly the next two decades could boost prices, which have historically varied substantially. The analysts said future ratings would emphasize a utility's ability to manage the risk of gas price volatility and liquidity options.


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