• Bond Rating Agencies Discount Talk of TVA Divestiture
  • March 21, 2014
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • The annual budget plan released by the Obama Administration earlier this month noted that the Tennessee Valley Authority (TVA) had achieved its original mission and should be sold or transferred to state governments or local power cooperatives in the Tennessee Valley. Nonetheless, bond rating agencies Moody’s and Standard & Poor’s have discounted these proposals, and TVA has retained its top AAA rating. Although the rating has remained the same, the rating agencies have noted that TVA would likely lose its favorable borrowing authority if it were no longer owned by the federal government.