Tennessee Valley Authority:

Bond Ratings Based on Ties to the Federal Government and Other Nonfinancial Factors

GAO-01-540: Published: Apr 30, 2001. Publicly Released: May 3, 2001.

Additional Materials:

Contact:

Linda M. Calbom
(202) 512-8341
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Although the criteria used to rate the bonds of the Tennessee Valley Authority (TVA) and other electric utilities are the same, they are weighted differently and, as a result, the basis for TVA's bond rating is more nonfinancial in nature than that for other electric utilities. According to bond analysts, TVA's high bond rating is largely based on the perception that its debt is federally backed because of its ties to the federal government as a wholly owned government corporation and its legislative protections from competition. If these conditions were to change, TVA's bond rating would likely be lowered, which, in turn, would affect the cost of new debt. This would add to its already high interest expense and corresponding financial challenges in a competitive market.

Apr 12, 2018

Mar 20, 2018

Mar 13, 2018

Mar 12, 2018

Feb 15, 2018

Feb 8, 2018

Feb 2, 2018

Jan 8, 2018

Dec 21, 2017

Dec 13, 2017

Looking for more? Browse all our products here