Once again, Memphis Light, Gas and Water has been recognized by the market as an excellent investment for bond buyers.
On Sept. 13, MLGW issued over $150 million in bonds across its three utility divisions. The bonds were issued at 2.777 percent interest for the electric division, 2.831 percent for gas and 2.735 for water.
By MLGW’s charter, each division within the utility is financially independent in regards to issuing credit. As a result, S&P Global Ratings and Moody’s Investors Service assessed each separately.
For the second year in a row, MLGW’s water division was assessed by S&P as AAA credit and Aa1 by Moody’s. The electric division was rated AA and Aa2, and gas received AA- and Aa1 ratings, respectively.
The low interest and high credit ratings reflect the market’s confidence in MLGW as a sound investment. The water division’s AAA rating — S&P’s highest rating — is notably difficult to earn. Even the gas division, which last year issued bonds for the first time since 1984, received an interest rate close to the other more highly rated divisions.
MLGW is the largest three-service public power utility in the nation, serving more than 421,000 customers in Memphis and Shelby County.