American Municipal Power, Inc. (AMP) takes great pride in its relationship with the financial community. The importance of this relationship grows as AMP continues to enter the market to finance new capital projects. Policies have been established by the AMP Board of Trustees to ensure AMP remains a strong and viable organization throughout this period of growth.

Access to Liquidity

Credit Agreement
On May 3, 2017, AMP entered into a 5-year, $600 million Revolving Credit Agreement with a syndicate of commercial banks led by Royal Bank of Canada, as Administrative Agent. The maturity date of the agreement is May 2, 2022 and the commitment is expandable to $850 million. Other lenders in the syndicate include: Bank of America, NA; Wells Fargo Bank, NA; U.S. Bank, NA; PNC Bank, NA; The Huntington National Bank; KeyBank; Citibank; and Barclays Bank.

Credit/Rating Objectives

AMP seeks to obtain and maintain the highest credit rating for all projects. AMP has traditionally received ratings from three ratings agencies (Fitch Ratings, Moody’s Investors Service, and Standard & Poor’s).

Financial Transparency
In addition to an annual audit, AMP has a quarterly financial review performed by its independent accounting firm. In addition, AMP makes available periodic status reports on projects under construction.

Member Financial Soundness
AMP finance staff monitors the financial soundness and creditworthiness of all AMP members. Upon release of each AMP member’s annual financial audit, using a Credit Scoring Policy passed through the AMP Board of Trustees, AMP staff conducts an internal credit scoring review.

Credit Scores are presented to the AMP Board of Trustees monthly. Should a member’s score fall below acceptable levels, AMP finance staff works with that member to bring their score into the range acceptable by the Credit Scoring Policy.

Financial Criteria for Membership
Due to the benefits provided through AMP membership, AMP is approached from time to time by subdivisions of states who are seeking to become a member. In order to ascertain the potential financial risks of adding a new member, the AMP Board of Trustees has passed a financial criteria policy with specific guidelines that candidates seeking membership must meet. AMP finance staff conducts a financial review based on the metrics within that policy, and recommendations for membership are provided to the AMP Board of Trustees.

Continuing Disclosure

AMP maintains compliance with all requirements for continuing disclosure as required to meet Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Act of 1934.