OREANDA-NEWS. S&P Global Ratings raised its long-term rating and underlying rating (SPUR) to 'AA-' from 'A+' on the Grand River Dam Authority (GRDA), Okla.'s previously issued revenue bonds. At the same time, we assigned our 'AA-' rating to GRDA's $440.4 million series 2016A and $18.4 million series 2016B (taxable) revenue refunding bonds. The outlook is stable.

"The rating action reflects our view of GRDA's improving financial metrics, including fixed-charge coverage and liquidity, lack of additional bond issuance plans, and declining reliance on coal-fired generation," said S&P Global Ratings credit analyst Paul Dyson.

The bond proceeds will be used to advance refund GRDA's series 2008A and 2010A bonds for savings, and to refinance into fixed-rate mode GRDA's $65 million series 2014C variable-rate bonds to reduce interest rate volatility exposure.

The stable outlook reflects our view of GRDA's improved credit metrics that have resulted from improved cash flow as a result of lower debt service in recent years, coupled with GRDA's lack of additional bond issuance plans or generation needs for the next several years.