April 11 The Tennessee Valley Authority would
likely lose its Aaa debt rating if the federal government
divested the public power system after a strategic review
proposed in President Barack Obama's budget plan, Moody's
Investors Service said on Thursday.
The Wall Street credit group said in a news release no
downgrade or other rating action was needed now because it was
far from clear a divestiture would be approved by Congress. In
addition, such a move might face political opposition in the
seven states served by the power producing authority.
But Moody's said: "In an event of a divesture, TVA is
unlikely to maintain its Aaa rating."
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