Business News

LUS Fiber gets an A+

Standard & Poor’s upgrades the municipal communications system’s bond rating, indicating confidence in its financial and operational performance.

LUS Fiber Director Terry Huval
Photo by Robin May

LUS Fiber this week announced that Standard & Poor’s has updated its bond rating from "A" to “A+” with a stable outlook.

LUS Fiber, which is in its 6th year of operation, says in a prepared statement that the stable outlook reflects S&P’s expectation that its strong financial profile is sustainable. The increase results in a one-notch ratings differential.

S&P’s ratings are expressed opinions about credit risk of the organization’s ability to meet its financial obligations on time and in full, LUS Fiber notes in the release. According to a statement released by Standard & Poor’s Ratings Services, the upgrade reflects S&P’s view of the utilities system’s sustained strong fixed charge coverage and liquidity levels, and the communication system’s improved cash flow.

The communications system’s strong performance also led Standard & Poor’s to upgrade the LUS combined utility revenue bonds for its electric, water and wastewater system “ from “A+” to "AA-.”