Bloomberg News

Fitch Ratings upgraded South Carolina Public Service Authority’s (Santee Cooper) rating to A from A-minus, citing the utility’s very strong revenue defensibility and the belief that its financial profile will continue improving.

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The outlook is stable. 

Cash flow and operating income increased following expiration of a five-year rate lock agreement, reinstatement of cost recovery adjustments and an April 2025 rate increase, Fitch said. 

“Financial metrics are likely to improve further through 2028, supported by growing electric sales and modest annual rate increases,” Fitch said. 

The utility’s operating costs — 6.3 cents per kilowatt-hour — are low for its wholesale business and very low for retail, Fitch said. 

Fitch said the utility’s leverage rose above 15 times in 2024 but fell below 11 times last year and is expected to slide below 10 times within the next two years. 

Santee Cooper’s coverage was 1.4 times and liquidity was 260 days of cash on hand in 2025, both improvements over 2024. 

Santee Cooper is a state-owned electric and water utility that had $8.6 billion in long-term debt, as of Dec. 31, 2025, according to its Annual Comprehensive Financial Report.

Santee Cooper’s bonds are rated A-minus with a positive outlook by S&P Global Ratings and A3 by Moody’s Ratings

Santee Cooper didn’t immediately respond to a request for comment.