20210325Avista to Staff 75 Attachment A8.pdf

INFRASTRUCTURE AND PROJECT FINANCE
CREDIT OPINION
28 July 2020
Update
RATINGS
Avista Corp.
Domicile Spokane, Washington,
United States
Long Term Rating Baa2
Type LT Issuer Rating
Outlook Stable
Please see the ratings section at the end of this report
for more information. The ratings and outlook shownreflect information as of the publication date.
Contacts
Edna R Marinelarena +1.212.553.1383
Analyst
[e-mail]
Domenic Giovannone +1.212.553.1647
Associate Analyst
[e-mail]
Ryan Wobbrock +1.212.553.7104
VP-Sr Credit Officer
[e-mail]
Michael G. Haggarty +1.212.553.7172
Associate Managing Director
[e-mail]
Jim Hempstead +1.212.553.4318
MD-Utilities
[e-mail]
CLIENT SERVICES
Americas 1-212-553-1653
Asia Pacific 852-3551-3077
Japan 81-3-5408-4100
EMEA 44-20-7772-5454
Avista Corp.
Update to credit analysis
Summary
Avista Corporation's (Avista) credit profile reflects its primary business as a low-risk vertically
integrated electric and gas utility with supportive cost recovery mechanisms, such as electric
and gas decoupling. The credit further incorporates the company's adequate track record
with its primary regulator, the Washington Utilities and Transportation Commission (WUTC).
Although Avista has experienced some relatively contentious proceedings in the past, we
expect regulatory outcomes to become more predictable over time because of the May 2019
passage of a new clean energy bill in Washington. The bill is credit positive for Avista because
it clarifies the WUTC's authority to consider and implement various constructive regulatory
mechanisms including multiyear rate plans and performance and incentive-based regulation.
Avista's credit is constrained by lower key metrics driven by issuance of new debt to support
liquidity and fund capex. We expect key metrics including CFO pre-WC to debt to be at
about 14% over the next several years and should improve as the company files more
frequent rate cases to recover costs. Avista has some unregulated exposure in addition to
its ownership of regulated utility Alaska Electric Light and Power (AEL&P, Baa3 Stable) that
provides marginal operational and cash flow diversity, but remain neutral in terms of our
view of Avista's credit.
COVID-19 Developments
The rapid spread of the coronavirus outbreak, severe global economic shock, low oil prices
and asset price volatility are creating a severe and extensive credit shock across many sectors,
regions and markets. The combined credit effects of these developments are unprecedented.
We regard the coronavirus outbreak as a social risk under our ESG framework, given the
substantial implications for public health and safety.
We expect Avista and its subsidiaries to be resilient to recessionary pressures related to the
coronavirus because of its primary rate regulated, essential service business model and cost
recovery framework. Nevertheless, we are watching for electric usage declines, utility bill
payment delinquency and the regulatory response to counter these effects on earnings and
cash flow. As the events related to the coronavirus unfold, we are taking into consideration
a wider range of potential outcomes, including more severe downside scenarios. The effects
of the pandemic could result in financial metrics that are weaker than expected; however, we
see these issues as temporary and not reflective of the core operations or long-term financial
or credit profile of the company
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Exhibit 1
Historical CFO pre-WC, Total Debt and CFO pre-WC to Debt
$ in millions
$386 $404 $358 $355 $345
$1,991 $2,051
$2,297 $2,372 $2,336
19.4%
19.7%
15.6%15.0%14.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
$-
$500
$1,000
$1,500
$2,000
$2,500
Dec-16 Dec-17 Dec-18 Dec-19 LTM Mar-20
CFO Pre-W/C Total Debt CFO Pre-W/C / Debt
Source: Moody's Financial Metrics
Credit Strengths
» Low-risk, $3.4 billion rate base utility with supportive cost recovery mechanisms
» Track record of strong cash flow generation
» 2019 clean energy bill provides for additional credit positive regulatory tools
Credit Challenges
» Limited financial buffer expected over next three years
» Delayed cost recovery due to historic test year requirement
» History of contentious regulatory proceedings
Rating Outlook
The stable outlook incorporates our view that Avista's financial profile will remain adequate over the next several years with CFO pre-
WC to debt at about 14%. In addition, the stable outlook assumes Avista will receive adequate cost recovery authorizations within its
regulatory jurisdictions and that unregulated operations will remain below 15% of consolidated earnings and cash flow.
Factors that Could Lead to an Upgrade
A rating upgrade is unlikely over the next 12 to 18 months given expectation of narrowed financial performance as a result of higher
debt coupled with delayed plans to file rate cases as a result of economic impacts from the coronavirus. An upgrade could occur
if financial metrics improve such that CFO pre-WC to debt was above 19% and CFO pre-WC less dividend was above 13% on a
consistent basis. Additionally, a demonstrated improvement in regulatory environment and relationship will remain a key rating driver.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on
www.moodys.com for the most updated credit rating action information and rating history.
2 28 July 2020 Avista Corp.: Update to credit analysis
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Factors that Could Lead to a Downgrade
A rating downgrade could result should there be a degradation of regulatory relationships resulting in inadequate cost recovery and
CFO pre-WC to debt dropping below 14% on a sustained basis.
Key Indicators
Exhibit 2
Avista Corp. [1]
Dec-16 Dec-17 Dec-18 Dec-19 LTM Mar-20
CFO Pre-W/C + Interest / Interest 5.4x 5.2x 4.5x 4.3x 4.2x
CFO Pre-W/C / Debt 19.4%19.7%15.6%15.0%14.8%
CFO Pre-W/C – Dividends / Debt 15.0%15.2%11.3%10.6%10.4%
Debt / Capitalization 44.5%48.4%50.5%49.2%49.4%
[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations. Financial Metrics™Source: Moody's Financial Metrics
Profile
Avista is primarily an electric and natural gas utility whose Avista Utilities operating division provides electric transmission and
distribution, and natural gas distribution services in parts of eastern Washington and northern Idaho. Avista Utilities also provide
natural gas distribution service in parts of northeastern and southwestern Oregon. The utility has electric generating facilities in
Washington, Idaho, Oregon and Montana and also supplies electricity to a small number of customers in Montana. For the three
months ended 31 March 2020, Avista Utilities averaged over 394,000 electric and over 362,000 gas customers.
Avista owns Alaska Energy and Resources Company (AERC; not rated), parent of Alaska Electric Light and Power Company (AEL&P;
Baa3 Stable) which serves around 17,000 electric customers in Juneau, Alaska.
Avista's utility operations are regulated by the Washington Utilities and Transportation Commission (WUTC), the Idaho Public Utilities
Commission (IPUC), the Oregon Public Utility Commission (OPUC) and the Montana Public Service Commission (MPSC). AEL&P is
under the purview of the Regulatory Commission of Alaska (RCA).
2019 earnings contribution breakdown Exhibit 4
Rate base by jurisdiction
Avista Utilities96%
AELP4%
Excludes other segments
Source: Avista Corp. Filings
Idaho29%
Washington63%
Oregon8%
As of 31 March 2020, excludes AEL&P
Source: Company Documents & Moody's Investors Service
3 28 July 2020 Avista Corp.: Update to credit analysis
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Detailed Credit Considerations
Strong cash flow producer with narrow financial metrics expected over next three years
Avista has a history of strong cash flow production averaging about $360 million from 2014 to 2019. Deferred income taxes historically
constituted a significant portion of Avista's operating cash flow, which averaged 30% over the 2014 to 2017 period. Post tax reform,
Avista's reliance on deferred income reduced annually reaching about zero as of LTM Q120 (see Exhibit 5). The loss of deferred tax
resulted in lower financial metrics ranging in the midteens over the last two years.
Exhibit 5Reduced reliance on deferred income taxes will continue
Historical CFO and deferred income taxes
$52
$125
$70
$9 $15
$376 $358
$410
$362
$398
$337
13.8%
34.8%
17.0%
2.4%3.8%
0.0%0%
5%
10%
15%
20%
25%
30%
35%
40%
-
50
100
150
200
250
300
350
400
450
12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 LTM (03/20)
Deferred Income Taxes CFO Deferred Income Taxes % of CFO
Source: Moody's Investors Service
We expect cash flow generation will continue to be strong although financial metrics will be weakened over the medium-term as a
result of additional debt to support liquidity and capital investment. As highlighted in Exhibit 6, CFO pre-WC to debt in 2020 is likely
to be just under 14% and sustain at about 14% through 2022. Avista intends to file a general rate case in Washington and Idaho in late
2020, which is the driver behind the improved CFO in the later year of the forecast period.
Because of historic test year requirements, Avista has experienced cash flow lags over the past several years. Management intended
to improve the lag by filing rate cases more frequently, but the coronavirus driven economic downturn delayed plans to file until
late 2020. Any outcome thereafter will not be effective until late 2021. Although the company's financial buffer will be limited over
the next several years, we expect performance will be close to forecast because the company has a strong track record of producing
consistent financial results in line with expectations.
Exhibit 6
Stable financial metrics through 2022 with improved flexibility in 2023
Historical and forecast CFO pre-WC to debt
21%
19%20%
16%15%
14%14%14%14%
17%17%
10%
12%
14%
16%
18%
20%
22%
24%
2015 2016 2017 2018 2019 2020E 2021E 2022E 2023E 2024E
CFO Pre-WC to debt Forecast Upgrade/Downgrade Treshold Range
Source: Moody's Investors Service
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We do not anticipate a material financial impact from the economic slowdown caused by COVID-19. Similar to other states,
Washington, Idaho and Oregon shutdown economic activity affecting sales primarily in March and April. Management reports a
modest overall decline in electric load driven by higher residential usage offsetting load loss in commercial and industrial customer
class; natural gas demand was within normal bounds. Favorably, Avista benefits from decoupling and other cost recovery mechanisms,
which mitigates effects from load loss within residential and commercial customers. The company instituted cost savings to offset
any additional negative impacts from the coronavirus and filed requests to recover costs associated with COVID-19 with all regulatory
jurisdictions.
Credit supportive regulatory jurisdictions with adequate track record for cost recovery
Washington
We view Avista's regulatory jurisdictions to be generally credit supportive. The Washington Utilities and Transportation Commission
(WUTC), which regulates roughly 60% of the company's rate base and revenue, has electric and gas decoupling mechanisms which
allow for timely recovery of fixed costs for the utility and drive stable and predictable gross margin and cash flow in the face of
declining use. Even so, the use of historic test years result in the need for Avista to file general rate cases frequently to recover and earn
on investments.
Avista filed its most recent electric and natural gas general rate cases on 30 April 2019 with WUTC and reached a partial settlement
in November 2019. The commission approved the settlement in March 2020. The partial settlement allows for a one year rate plan
increasing electric revenue by $28.5 million and natural gas revenue by $8 million effective 1 April 2020. The agreement is based on
an ROE of 9.4% and equity layer of 48.5%, which are slightly below industry averages. Additionally, the settlement includes provisions
for cost recovery associated with Colstrip units 3 and 4 decommissioning and remediation (D&R) expenses estimated at about $33
million as of 31 March 2020 and ability to accelerate depreciation to 2025 in recognition of the state's new energy bill requirements.
The original filing was for a two-year rate plan that included a $45.8 million increase in annual electric revenue and a $12.9 million
increase in annual natural gas revenue effective April 2020 and a $18.9 million increase for annual electric revenue and a $6.5 million
increase for annual natural gas revenue effective April 2021. The request was based on a 9.9% ROE and 50% equity layer. Additionally,
the order disallowed Avista recovery of costs associated with a 2018 Colstrip plant outage, ruling Avista failed to prove the costs were
prudently incurred. Total costs were about $3 million.
While we consider the last two Washington rate case outcomes as neutral from a credit perspective, the company has had a somewhat
contentious regulatory relationship in recent years particularly related to credit supportive mechanisms that would allow for faster cost
recovery. In an ongoing review of Avista's 2015 rate case, the rate base attrition adjustments, which we considered credit supportive,
were ruled by the Washington Court of Appeals in August 2018 as against the state’s used and useful law. Subsequently, both the Court
of Appeals and Superior Court terminated and remanded the case back to the WUTC to recalculate Avista's rates without the attrition
adjustment used in the final order. On 06 March 2020, the WUTC issued a final order which concluded the 2015 rate case review. The
order required Avista reimburse customers a total of $8.4 million or $4.9 million to electric customers and $3.5 million to natural gas
customers.
Idaho
Avista reached an all parties settlement on 11 October 2019 for its electric general rate case filed 10 June 2019. The settlement,
which was approved on 1 December 2019 by IPUC, included a revenue reduction of $7.18 million effective 1 December 2019. The
approved revenue decrease was based on a 9.5% ROE and a 50% equity ratio, which were in line with prior approved levels. Avista
requested a revenue increase of about $5.3 million that included costs associated with their wind generation PPAs in base rates
instead of continuation of the Power Cost Adjustment (PCA) mechanism. The settlement approved continuation of the PCA instead of
inclusion in base rates. Avista was authorized electric and gas decoupling mechanisms, known as Fix Cost Adjustment (FCA) in Idaho, in
December 2015 for a three-year period beginning 1 January 2016. The company filed a request for continuation, and the IPUC approved
the request on 17 December 2019.
Oregon
The company filed its latest natural gas rate case on 16 March 2020 seeking a $6.8 million or 6.8% base rate increase. Management
expects proceedings to move along and could reach an overall settlement with effective rates mid January 2021. On 9 October
2019, the OPUC approved an all-party natural gas rate settlement filed in August 2019 taking effect 15 January 2020. The approved
5 28 July 2020 Avista Corp.: Update to credit analysis
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settlement increases natural gas revenue by $3.6 million and maintains the 9.4% ROE and a 50% equity layer. As part of its March
2016 rate case order in Oregon, Avista is allowed to implement a revenue per customer decoupling mechanism.
Alaska
AELP lowered customer rates by 6.7% or $2.4 million annually effective 1 August 2018 to reflect the lower tax rate associated with
tax reform. The RCA also approved AELP's proposal to refund to customers a one-time credit equal to the 6.7% rate reduction for 1
January through 31 July 2018. The utility completed the refund during the third quarter of 2018. The impact of the TCJA on AELP’s
deferred income taxes will be addressed in its next general rate case to be filed by August 30, 2021. AELP's allowed ROE of 11.95% and
equity layer of 58.18% is above the average of authorized returns for the industry, a credit positive. However, we note that Alaska has a
statutory period of 450 days or approximately 15 months to decide on rate cases, the longest in the nation and has not authorized cash
flow stabilizing mechanisms such as revenue decoupling.
Washington's clean energy bill enhances regulatory framework
In May 2019, Washington State Governor Jay Inslee signed a package of clean energy legislation including the 100% clean energy and
regulatory reform bill (SB 5116). We expect Avista's regulatory environment to strengthen as a result of passage of this legislation. The
bill requires electric utilities to eliminate coal-fired generation by 2025, transition the state's electricity supply to 80% renewables and
100% carbon neutral power by 2030 and be 100% carbon free by 2045. We view the law as credit positive because it includes the
potential for enhanced cost recovery mechanisms that can improve utility financial performance and provides a legal and regulatory
framework to reduce carbon exposure risks.
Compliance with the law will require significant investment and an overhaul of existing state electric infrastructure. However, the law
acknowledges the WUTC's authority to implement performance and incentive based regulation, multiyear rate plans and other “flexible
regulatory mechanisms” to achieve the state's public interest objectives. Importantly, the law also recognizes that the policy must
include safeguards that do not impair the reliability of the electricity system nor impose unreasonable costs on utility customers.
Some of the key components of SB 5116 include: four year clean energy implementation plans to be filed and approved beginning in
2022; successive four year compliance periods to implement WUTC approved clean energy plans for interim goals beginning in 2022;
penalty payments for failure to comply with emissions goals; alternative compliance options (including payments, use of renewable
energy certificates, investment in “energy transformation projects”); and 2% revenue increase caps on compliance costs. It also
promotes energy transformation projects, including support of the electrification of transportation, smart grid investments, distributed
generation and grid resilience, among others. SB 5116 also requires the WUTC to accelerate depreciation schedules for coal generation
resources, including transmission lines, to December 31, 2025, or to allow investor-owned utilities to recover costs in rates for earlier
closure of those facilities.
ESG considerations
From an environmental perspective, Avista has moderate carbon transition risk within the regulated electric and gas utility sector. The
company's electric generation resource mix consists of 34% fossil fuels and 9% coal. The Washington and Idaho commissions agreed
to set aside $11.7 million and $6.4 million, respectively, of TCJA related electric tax benefits to offset costs associated with accelerating
depreciation of Avista's only coal facilities, Colstrip Units 3 and 4. The remaining useful life under the WUTC agreement is 31 December
2025 while the IPUC authorized to 31 December 2027. Colstrip Units 3 & 4 will cease service to Washington customers in 2025 in
line with state requirements. Moody’s framework for assessing carbon transition risk in the utility industry is discussed in “Prudent
regulation key to mitigating risk, capturing opportunities of decarbonization” (2 November 2017).
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Exhibit 7
Avista electric generation mix
As of 31 March 2020
Natural Gas
34%
Coal
9%
Wind4%Biomass
2%
Hydro51%
Based on maximum capacity, excludes AEL&P
Source: Avista Corp. Filings
Social considerations include risks associated with safety and reliability of company services and supply, business reputation or
regulatory relations, an aging workforce and ability to hire and retain qualified personnel. With respects to regulatory relations, Avista
has experienced a contentious relationship in the past, we anticipate a more predictable regulatory environment as a result of the 2019
legislative action. Regarding health and safety, we see a rise of social risks associated with the COVID-19 pandemic and its effect on
the health and safety of plant operations. The safety and reliability of service are extremely important and are a key focus for Avista's
utilities.
From a governance perspective, financial and risk management policies including a strong financial profile are important characteristics
for managing environmental and social risks. We view the governance of Avista as strong based on our assessment criteria. Moody's
framework for assessing corporate governance is discussed in “Utilities and power companies – North America Corporate governance
assessments show generally credit-friendly characteristics” (September 19, 2019).
Liquidity Analysis
We expect Avista to maintain adequate liquidity over the next 12-18 months. Avista's external liquidity sources consist of a $400
million senior secured revolving credit facility, which expires in April 2022. At the end of Q120, there was about $182 million available
under the line of credit. Since Avista currently has unsecured investment-grade ratings from two nationally recognized rating agencies,
the company has the option to request the banks to relinquish the existing First Mortgage Bond collateral position. Avista has not
asked for the release, keeping the company as one of the few US regulated utilities to maintain a secured bank credit facility. The
secured nature of the credit facilities constrains Avista's liquidity flexibility, in our opinion, since the typical investment grade issuer
(having an unsecured facility) can use collateral as an option to improve bank credit access during periods of unforeseen liquidity stress.
Avista was in compliance with the facility’s sole covenant of less than 65% capitalization, with a ratio of 53.7% as of 31 March 2020.
We note that the company has no material adverse change language beyond the close of the facility, a credit positive.
AEL&P has a $25 million line of credit which expires in 2024 and requires a consolidated debt to capitalization covenant of 67.5%. As
of 30 March 2020, there were no borrowings or letters of credit outstanding under the facility and AEL&P was in compliance with its
covenant, with a ratio of 52.3%.
Avista entered into $100 million 364-day term loan in April 2020 to support liquidity. Additionally, the company plans to issue
$165 million in long-term debt to refinance the $52 million in senior debt maturing in December 2020 as well as fund capital
spending estimated at $405 million annually through 2024. This is consistent with prior years where the company funds capex with a
combination of long-term debt and equity.
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Exhibit 8
Avista Corp. Debt Maturities
($ in millions)
$52
$250
$14 $25
0
50
100
150
200
250
300
2020 2021 2022 2023 2024 2025 2026 2027 2028
Excludes $15 million term loan at Alaska Energy and Resources Company maturing in 2024
Source: Avista Corporation
8 28 July 2020 Avista Corp.: Update to credit analysis
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Methodology and Scorecard
Exhibit 9
Rating Factors
Avista Corporation
Regulated Electric and Gas Utilities Industry [1][2]
Factor 1 : Regulatory Framework (25%)Measure Score Measure Score
a) Legislative and Judicial Underpinnings of the Regulatory Framework A A A A
b) Consistency and Predictability of Regulation Baa Baa Baa Baa
Factor 2 : Ability to Recover Costs and Earn Returns (25%)
a) Timeliness of Recovery of Operating and Capital Costs Baa Baa Baa Baa
b) Sufficiency of Rates and Returns Baa Baa Baa Baa
Factor 3 : Diversification (10%)
a) Market Position A A A A
b) Generation and Fuel Diversity A A A A
Factor 4 : Financial Strength (40%)
a) CFO pre-WC + Interest / Interest (3 Year Avg)4.6x A 4x - 4.5x Baa
b) CFO pre-WC / Debt (3 Year Avg)16.7%Baa 13.6%-14.0%Baa
c) CFO pre-WC – Dividends / Debt (3 Year Avg)12.2%Baa 9%-10%Baa
d) Debt / Capitalization (3 Year Avg)48.4%Baa 48%-51%Baa
Rating:
Scorecard-Indicated Outcome Before Notching Adjustment Baa1 Baa1
HoldCo Structural Subordination Notching 0 0 0 0
a) Scorecard-Indicated Outcome Baa1 Baa1
b) Actual Rating Assigned Baa2 (P)Baa2
Current
LTM 3/31/2020
Moody's 12-18 Month Forward
View
As of Date Published [3]
[1] All ratios are based on 'Adjusted' financial data and incorporate Moody's Global Standard Adjustments for Non-Financial Corporations.
[2] As of 3/31/2020 (LTM)
[3] This represents Moody's forward view; not the view of the issuer; and unless noted in the text, does not incorporate significant acquisitions and divestitures.
Source: Moody’s Financial Metrics™
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Appendix
Exhibit 10
Peer Comparison Table [1]
FYE FYE LTM FYE FYE LTM FYE FYE LTM FYE FYE LTM
(in US millions)Dec-18 Dec-19 Mar-20 Dec-18 Dec-19 Mar-20 Dec-18 Dec-19 Mar-20 Dec-18 Dec-19 Mar-20
Revenue 1,397 1,346 1,353 3,346 3,401 3,422 1,367 1,343 1,384 1,991 2,123 2,082
EBITDA 452 463 458 1,393 1,329 1,331 503 527 507 749 787 754
CFO Pre-W/C / Debt 15.6%15.0%14.8%20.3%15.1%18.5%17.5%15.3%17.9%22.2%19.7%21.4%
CFO Pre-W/C – Dividends / Debt 11.3%10.6%10.4%16.5%11.7%15.2%12.2%9.8%12.3%17.8%15.3%16.9%
Debt / EBITDA 5.1x 5.1x 5.1x 3.3x 3.6x 3.6x 4.5x 4.5x 4.5x 3.8x 3.8x 3.8x
Debt / Capitalization 50.5%49.2%49.4%49.9%49.3%50.3%43.9%43.6%43.5%49.6%50.5%49.6%
EBITDA / Interest Expense 4.4x 4.3x 4.3x 5.7x 5.2x 5.4x 4.5x 4.8x 4.5x 5.5x 5.7x 5.5x
(P)Baa2 Stable Baa1 Stable A3 Stable A3 Stable
Avista Corp.Puget Sound Energy, Inc.Idaho Power Company Portland General Electric Company
[1] All figures & ratios calculated using Moody's estimates & standard adjustments. FYE=Financial Year=End. LTM=Last Twelve Months.
Source: Moody's Financial Metrics
Exhibit 11
Cash Flow and Credit Metrics [1]
($ in millions)
CF Metrics Dec-16 Dec-17 Dec-18 Dec-19 LTM Mar-20
As Adjusted
EBITDA 473 488 452 463 458
FFO 442 389 332 365 355
- Div 87 92 98 103 101
RCF 355 297 234 262 253
FFO 442 389 332 365 355
+/- ΔWC (28) 8 4 47 (7)
+/- Other (56) 15 26 (10) (10)
CFO 358 412 362 402 338
- Div 87 92 98 103 101
- Capex 407 412 424 447 452
FCF (136) (93) (160) (147) (215)
Debt / EBITDA 4.2x 4.2x 5.1x 5.1x 5.1x
EBITDA / Interest 5.4x 5.0x 4.4x 4.3x 4.3x
FFO / Debt 22.2%19.0%14.5%15.4%15.2%
RCF / Debt 17.8%14.5%10.2%11.1%10.8%
Revenue 1,442 1,446 1,397 1,346 1,353
Cost of Good Sold 547 525 495 438 455
Interest Expense 88 97 102 107 107
Net Income 141 126 84 128 75
Total Assets 5,310 5,518 5,833 6,082 5,965
Total Liabilities 3,672 3,799 4,074 4,158 4,086
Total Equity 1,637 1,719 1,759 1,925 1,879
[1] All figures & ratios calculated using Moody’s estimates & standard adjustments. Periods are Financial Year-End unless indicated. LTM = Last Twelve Months.
Source: Moody’s Financial Metrics™
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Ratings
Exhibit 12
Category Moody's Rating
AVISTA CORP.
Outlook Stable
Issuer Rating Baa2
First Mortgage Bonds A3
Senior Secured A3
Senior Unsecured MTN (P)Baa2
ALASKA ELECTRIC LIGHT AND POWERCOMPANY(AELP)
Outlook Stable
Issuer Rating Baa3
AVISTA CORP. CAPITAL II
Outlook Stable
BACKED Pref. Stock Baa3
Source: Moody's Investors Service
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REPORT NUMBER 1236582
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13 28 July 2020 Avista Corp.: Update to credit analysis
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