Moody’s lowers Citizens’ bond ratings, citing management’s corporate-like mindset

The Indianapolis Business Journal reported yesterday that Moody’s rating service has downgraded the ratings of Citizens bond issues. Here is part of the IBJ’s report–

“A review began in June after Citizens and Evansville-based Vectren Corp. unloaded ProLiance Energy, a financially troubled natural gas marketer they jointly owned, to Dallas-based Energy Transfer Partners.

“Moody’s began the review to determine if ProLiance, which lost $51 million in 2012, had an effect on Citizens, which held a 39-percent stake.

“Exiting the investment was a good thing, said Dan Aschenbach, a senior vice president at Moody’s. But Citizens’ “corporate-like” mindset—compared to more conservative strategies used at municipal utilities—carries more risk, he said.”

It’s difficult for some citizens to fathom why Citizens Energy Group and Citizens Water, as Public Charitable Trusts, have such a “corporate-like mindset”.


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