Tennessee Valley Authority
Statement – Rating Agencies Review of TVA Debt
August 9, 2011
TVA Chief Financial Officer John Thomas
TVA’s top credit rating has been reaffirmed by one agency, unchanged by another and downgraded one notch to AA plus by the third major agency. TVA understands that as a government-owned enterprise, a change in the rating of U.S. government securities can impact our own.
However, the fundamental financial strength of TVA is unchanged. TVA receives no taxpayer dollars and its debt is not part of the national debt.
Investors continue to seek the relative safety of U.S. Treasury and TVA investments, and the downgrade by one rating agency is not expected to have a material impact.
TVA has not seen a significant change in borrowing rates since the downgrade announcement, and 94 percent of TVA's debt portfolio would not be impacted by interest rate changes within the next year.
Media Contact
Duncan Mansfield, Knoxville, (865) 632-4660
TVA Media Relations, Knoxville, (865) 632-6000
Investor Relations
Ann Storberg, Knoxville, (865) 632-4425
TVA Investor Relations, Knoxville, (888) 882-4975