Dec 10 Moody's Investors Service said on Monday
that it could cut its ratings on about $7 billion of debt issued
by the Long Island Power Authority because key officials quit
after Superstorm Sandy.
Power outages and criticism dogged the authority, which
supplies electricity to Long Island, after the storm ravaged the
U.S. East Coast.
LIPA's chairman, CEO and three trustees all resigned in the
wake of the storm, leaving it with "the bare minimum number of
trustees needed to take action, and a potential vacuum of
leadership at this most critical juncture," Moody's said in a
In putting LIPA on watch for a downgrade, Moody's action
includes the A3 rating on about $6 billion senior lien Electric
System Revenue Bonds, the Baa1 rating on $550 million
subordinate lien revenue bonds, and the Baa2 rating on
approximately $155 million third lien New York State Energy
Research and Development Authority bonds.