Power Ratings

LADWP gets new rating assigned by KBRA

KBRA (Kroll Bond Rating Agency, LLC) has assigned a long-term rating of AA to the Department of Water and Power of the City of Los Angeles, CA ("LADWP") Power System Revenue Bonds, 2026 Series C. The outlook is stable, KBRA said in a September 16 press release.

The long-term rating reflects the stable operating and financial performance of LADWP's Power System. LADWP is the exclusive provider of electric and water utility services within the City of Los Angeles. The Power System provides energy, transmission and distribution services to approximately 1.6 million customers and is responsible for 25% of California's electric transmission assets.

LADWP benefits from a large, mostly residential service area, a diverse generation mix, and conservative, Board-adopted financial planning criteria. Residential customer rates, though above the national average and rising, remain in line with or below the State's residential average on an annualized basis. Strong service-area wealth metrics and relatively low residential electricity usage support rate flexibility.

Counterbalancing these strengths are contingent liability risks related to the 2025 wildfires and future wildfires, and to the strict liability standards imposed by California's inverse condemnation law. Potential adverse wildfire-related litigation outcomes that pressure the Department's ability to meet the related liability exposure would likely have a negative rating impact.