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Fitch Removes Rating Watch Negative on MEAG Power Project J Bonds; Outlook Negative

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June 24, 2020


The following is a fitch ratings news release:

Fitch Ratings has removed the Rating Watch Negative on approximately $2.0 billion of Municipal Electric Authority of Georgia's (MEAG Power) Project J bonds following the U.S. District Court's decision that the power purchase agreement (PPA) governing Vogtle project-related payments between JEA and MEAG Power is valid and enforceable. The 'BBB+' rating is affirmed and the Rating Outlook is Negative, reflecting the potential for further weakening in the rating if significant additional cost increases or timing delays occur at the project.

Fitch's rating on the Project J bonds relies explicitly on the PPA with JEA, as well as Fitch's view that the PPA is valid, legal and binding. While the court's decision is subject to appeal upon the completion of remaining monetary relief claims, the legal decision is sufficient support to remove the Rating Watch Negative designation on the bond ratings.

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