Fitch cuts LIPA revenue bonds on Superstorm Sandy fallout
Sept 5 (Reuters) - Fitch Ratings on Thursday downgraded the Long Island Power Authority's outstanding $5.9 billion of electric system general revenue bonds to A-minus from A, citing political and operational fallout after LIPA's handling of Superstorm Sandy last October.
The outlook remains negative.
"Intense political and public criticism of LIPA following (Sandy) have reduced the authority's rate and financial flexibility," Fitch analysts said in a comment.
The criticism also led to turnover in LIPA's board and, ultimately, legislation that broadened state regulation of the utility, Fitch noted.