MOODY'S INVESTORS SERVICE UPGRADES GREEN MOUNTAIN POWER
15 August 2007
Moody's Investors Service upgraded the senior debt ratings of Green Mountain Power Corporation, reflecting the rating agency's conclusion that the recent purchase of Green Mountain Power by Gaz Metro will yield financial benefits.
In its press release, Moody's said, "The rating action reflects our views that GMP should be able to benefit both financially and operationally from its recent change in ownership..."
"We are gratified to see that the financial community agrees with our analysis that the acquisition of Green Mountain Power by Gaz Metro would benefit our customers and the entire state of Vermont because we would be in a better financial position when we negotiate new power contracts," said Chris Dutton, Green Mountain Power president and chief executive officer.
The Moody's decision, which was released August 7, 2007, also stated, "Operationally, we believe GMP stands to benefit from improved negotiating leverage as part of a larger creditworthy family when it seeks to replace expiring power supply contracts over the long term."
Green Mountain Power will need to negotiate new power contracts to replace the existing contracts for power from Vermont Yankee and Hydro Quebec when they expire in 2012 and 2015, respectively. Those sources alone supply two-thirds of the electricity Green Mountain Power sells.
The financial rating agency upgraded Green Mountain Power's senior secured debt to A3 from Baa1 and assigned a stable rating outlook.
Green Mountain Power (www.greenmountainpower.biz) is an electric utility owned by Northern New England Energy Corporation, a wholly-owned subsidiary of Gaz M¿tro, a leading Qu¿bec energy company with a long history of investment in Vermont. Green Mountain Power transmits, distributes and sells electricity and utility construction services in the State of Vermont in a service territory with approximately one quarter of Vermont's population. It serves approximately 92,000 customers.
For further information, please contact Dorothy Schnure, Green Mountain Power Manager of Corporate Communications, at 802-655-8418.