Moody’s downgrades utility

Monday, May 14, 2001 | 10:54 a.m.

Moody's Investors Service downgraded the credit ratings of Sierra Pacific Resources, holding company of Las Vegas electric utility Nevada Power Co.

Moody's lowered Sierra Pacific's long-term credit ratings from Baa3 to Baa2.

Moody's said its new ratings "reflect the sizable debt burden at (Sierra Pacific), as well as risks associated with the funding the significant energy cost deferrals and growth at the operating utility companies."

Sierra Pacific is entitled to collect any difference between the wholesale cost of electricity and the price it is charging consumers, but those payments will be deferred over the next several years. These risks are high at Nevada Power, leading to a negative outlook for the unit, Moody's said.

Sierra Pacific reported long-term debt of $2.13 billion on March 31.

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