KBRA Releases Rating Report for the Department of Water and Power of the City of Los Angeles (LADWP) Power System Revenue Bonds, 2023 Series D

On September 28, 2023, KBRA assigned a AA rating to the Department of Water and Power of the City of Los Angeles (LADWP) Power System Revenue Bonds, 2023 Series D. Concurrently, KBRA affirmed the AA rating on the Department's outstanding Power System Revenue Bonds. The Outlook for all Bonds is Stable.

The rating reflects LADWP’s stable operating history, adequate rate flexibility and conservative Board-adopted financial planning criteria. While acknowledging the Department’s steady progress, to date, in the mandated conversion of its fuel supply mix to renewable energy sources, the rating also considers the massive costs associated with effectuating this plan, which are gradually coming into focus, and are likely to stress financial metrics and pressure electric rate affordability over the near to mid-term. Contingent liability risks related to wildfire and to the strict liability standards imposed by California’s inverse condemnation law are further rating considerations.

To access rating and relevant documents, click here.

Click here to view the report.