S&P Global Ratings has assigned its ‘A+’ issue rating and ‘1+’ recovery rating to MidAmerican Energy Co.’s (MEC) – a subsidiary of Warren’s Buffett’s Berkshire Hathaway – first “eligible green” bonds.
MEC’s first mortgage bond issues, worth $375 million (due 2027) and $475 million (due 2047) respectively, will replenish the utility’s general funds that were used to begin construction on two wind farm projects in Iowa – the 551-megawatt Wind X and 2,000 megawatt Wind XI. The rating reflects the likelihood of full recovery of principal given the bonds have collateral with ample coverage.
When Wind XI, the largest single economic development project ever in Iowa, is completed later this year, MEC will be generating enough electricity with renewable resources to satisfy approximately 85% of the state’s retail customer demand.
As a result of Moorgate’s media campaign, the rating gained coverage with the infrastructure and institutional investor press, including Environmental Finance, FTSE Global Markets, and Global Capital (subscription required).
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