20210325Avista to Staff 75 Attachment A9.pdf

Announcement of Periodic Review: Moody's announces completion of a
periodic review of ratings of Avista Corp.
09 Oct 2020
New York, October 09, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the
ratings of Avista Corp. and other ratings that are associated with the same analytical unit. The review was
conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the
context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and
operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019,
Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit
rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a
portfolio review and hence are not impacted by this announcement. 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.
Key rating considerations are summarized below.
Avista Corporation's (Avista) Baa2 rating reflects the low business risk profile of its vertically integrated electric
and gas utilities with credit supportive regulatory jurisdictions including cost recovery mechanism such as
electric and gas decoupling in Washington, the company's primary jurisdiction. The rating further incorporates
the company's adequate track record with its primary regulator, the Washington Utilities and Transportation
Commission (WUTC). Avista's rating is constrained by lower key metrics due to new debt to support liquidity
and fund capex. We expect 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 is primarily an electric and gas utility whose Avista Utilities operating division provides electric
distribution and transmission, and natural gas distribution services in parts of eastern Washington, northern
Idaho and to a small number of customers in Montana. Avista also owns Alaska Energy and Resources
Company (AERC), parent of Alaska Electric Light and Power Company (AEL&P). AEL&P is a regulated
vertically integrated electric utility which serves around 17,000 customers in Juneau, Alaska.
This document summarizes Moody's view as of the publication date and will not be updated until the next
periodic review announcement, which will incorporate material changes in credit circumstances (if any) during
the intervening period.
The principal methodology used for this review was Regulated Electric and Gas Utilities published in June
2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non EU rated and non EU endorsed
ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
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.
Edna Marinelarena
Analyst
Project & Infrastructure Finance
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Staff_PR_075 Attachment A9 Page 1 of 4
Michael G. Haggarty
Associate Managing Director
Project & Infrastructure Finance
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
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