Fitch keeps negative watch on Texas municipal utility Garland Power & Light

Fitch Ratings on March 9 maintained Rating Watch negative on Texas municipal utility Garland Power & Light's ratings as it awaits more information related to the financial impacts of the mid-February winter weather events, market disruption and degree of commodity price volatility within the Electric Reliability Council Of Texas Inc. market.

The rating agency said it will continue to evaluate the steps taken by the utility to recover excess costs, maintain strong liquidity and address near-term financial obligations.

Fitch maintained the Rating Watch negative on the following city of Garland, Texas, electric utility system obligations, issued on behalf of GP&L, including: $6.2 million of electric utility system revenue bonds, series 2013 at AA; $521.2 million of electric utility system revenue refunding bonds (subordinate lien) new series 2014, 2015, 2016A, 2016B, 2018, 2019, 2019A, 2020 and 2021 at AA-; $53 million of electric utility system commercial paper notes, series 2018 (bank notes) at AA-; and the stand-alone credit profile at aa-.

In addition, due to prerefunding activity, Fitch withdrew its ratings on certain revenue bonds issues by Garland and GP&L.