Moody’s Investors Service Affirms BED’s A3 Credit Rating
Recognizes Renewable Power, Competitive Rates, and Improved Financial Metrics
Burlington, VT – Moody’s Investors Service affirmed the A3 credit rating and stable outlook of Burlington Electric Department (BED) in a credit opinion update issued December 12, 2025, citing BED’s “generally competitive rates and diverse power supply mix that is 100% renewable under Vermont statutes.”
The Moody’s report identified positive trends with the recovery of financial metrics following the pandemic era, and rate plans that support A3 rating-level metrics. The report documents improvements in 2025 in BED’s debt ratio, adjusted days cash on hand, and adjusted debt service coverage ratios relative to 2023 and 2024. The report also cited as strengths that BED “[m]anagement is working on ensuring utility fixed cost recovery through rate structure,” and cited a stable and relatively diverse local economy “supported by higher education, technology and health care institutions.”
“BED’s credit rating affirmation recognizes BED’s continued focus on strong financial management while keeping rates competitive for our ratepayers,” stated Mayor Emma Mulvaney-Stanak. “I appreciate BED’s continuing efforts to effectively balance financial health for our municipal utility and affordability for customers, a balance that, considered together with our Administration’s focus on strong municipal finances and our recent municipal credit rating upgrade, will generate real financial savings for Burlingtonians.”
In October 2025, Moody’s upgraded the City of Burlington’s credit rating from an Aa3 to an Aa2. BED’s strong credit rating, together with Moody’s recent credit rating upgrade for the City, will enable BED to borrow at lower interest rates.
“Following challenges during the pandemic, BED has strengthened our financial metrics while keeping annual rate changes moderate,” stated Darren Springer, BED General Manager. “The affirmation of our A3 rating and the City’s recent credit upgrade means lower borrowing costs for our customers and validates our efforts to prudently steward utility finances on behalf of our customers and community. I appreciate the diligent budgeting and forecasting work of our BED team in helping us continue to improve our financial metrics, as well as the important oversight work of our Burlington Electric Commission which actively monitors our financials each month.”