In the course of routine surveillance, Fitch affirms the 'A+' rating on the Municipal Gas Authority of Georgia's (the Authority) approximately $110 million outstanding Gas Revenue Portfolio III bonds. The Rating Outlook is Stable.
While each project is supported by their respective project participants, the 'A+' rating on the project reflects the credit quality of the Authority's diverse membership, favorable court validated take-or-pay contracts, diverse gas supply and experienced management team that has delivered consistent discounts to its members. Credit concerns include the overall lower wealth indicators of several members and concentration of industrial customers (58% of total throughput).
The Authority is a joint action agency set up to manage wholesale gas supply for its 76 members and nine partial requirement partners. The top 10 members comprise 54% of total throughput; the largest of these is Warner Robins, GA, which is equal to approximately 10% of sales. The Authority's supply has diversified in the last five years to include prepay gas agreements from several different suppliers through the special purpose vehicle (SPV) Main Street as well as natural gas reserves acquired directly by the Authority and also through a joint action agency, Public Gas Partners (PGP).
