Moody’s Investors Service credit rating agency has revised its 2024 annual credit opinion of Dairyland from A3/Stable to A3/Positive.

In its ratings rationale, Moody’s indicated Dairyland’s credit rating reflects the expected continued improvement of Dairyland’s financial metrics, supported by expanding margins despite increasing capital spending. Our growing revenue stream from new customers, invested assets, long-term wholesale power contracts with members through 2066 and disciplined cost containment will all support Dairyland’s financial metrics.

“Dairyland’s strengthened credit rating this year is a testament to Dairyland’s Board, leadership and teams who stay focused on our strategic business plan and cost containment,” said EVP and CFO April Wehling. “Thank you to everyone for your commitment to Dairyland’s Strategic Priority of Financial Strength, ensuring our long-term success.”

Why good credit ratings are critical to financial strength
Credit ratings are opinions of the relative future credit risk of a given company. Therefore, it is critical to maintain a solid rating and a stable-to-positive outlook to assure current and future lenders of Dairyland’s creditworthiness. In addition to helping provide greater access to funds for needed projects, a solid credit rating can reduce funding costs. The three major credit rating agencies in the United States are Moody’s Investors Service, S&P Global Ratings and Fitch Ratings, Inc.

Click here to view the press release from Moody's Ratings.