Moody’s softens stance on plight of California utilities

A new report published by Moody’s states that the credit ratings of the securitization bonds shouldn’t be affected because the securitized asset is funded by a tariff, called a fixed transition amount (FTA), that has been isolated from the utilities’ corporate assets when sold to a special-purpose bankruptcy-remote entity. This consumption-based fee is imposed on ratepayers and is not dependent on a particular electrical provider.

The Atlanta Journal

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