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KBRA Affirms AA and Stable Outlook for Anaheim Housing and Public Improvements Authority's Revenue Bonds Issued for City of Anaheim's (CA), Electric Distribution System (Anaheim Public Utilities - Electric)

14 Aug 2026   |   New York

Contacts

KBRA affirms the long-term rating of AA with a Stable Outlook for the Anaheim Housing and Public Improvements Authority's (the "Authority's") revenue and revenue refunding bonds issued on behalf of the City of Anaheim's (the "City's") electric distribution system (Anaheim Public Utilities, electric system). Pursuant to an Installment Purchase Agreement (IPA) between the Authority and the City of Anaheim, the City's obligations under the IPA are secured by the net revenue payments of the City's electric distribution system.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Consistently solid financial performance, underpinned by favorable rate mechanisms to recover purchased power supply and environmental mitigation costs.
  • Competitive, affordable retail rates relative to the State average, providing rate and financial flexibility.
  • While portions of the service territory are exposed to wildfire risk, the Electric System anticipates 100% of the overhead lines in the highest wildfire risk areas to be undergrounded over the next year.

Credit Challenges

  • Moderately high leverage, as measured by long-term debt to net utility assets.
  • Economy concentration in the leisure and hospitality industries subjecting the City to economic volatility.
  • Maintenance of competitive and affordable rates while concurrently managing an evolving power supply portfolio that complies with the State’s longer-term renewable targets.

Rating Sensitivities

For Upgrade

  • Financial performance consistently above historical levels, including improved leverage.
  • Solidifying renewable additions through 2030, while maintaining rate competitiveness and affordability.

For Downgrade

  • Pressured customer rates, financial performance or leverage resulting from the evolving power supply position in response to State mandates.
  • Sustained decline in tourism that materially impacts electricity demand.

To access ratings and relevant documents, click here.

Methodology

Disclosures

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1016537