APS 2015 Annual Report Download - page 68
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Table of Contents
All of Pinnacle West’s loan agreements contain "cross-default" provisions that would result in defaults and the potential
acceleration of payment under these loan agreements if Pinnacle West or APS were to default under certain other material agreements.
All of APS’s bank agreements contain "cross-default" provisions that would result in defaults and the potential acceleration of payment
under these bank agreements if APS were to default under certain other material agreements. Pinnacle West and APS do not have a
material adverse change restriction for credit facility borrowings.
See Note 6 for further discussions of liquidity matters.
Credit Ratings
The ratings of securities of Pinnacle West and APS as of February 12, 2016 are shown below. We are disclosing these credit
ratings to enhance understanding of our cost of short-term and long-term capital and our ability to access the markets for liquidity and
long-term debt. The ratings reflect the respective views of the rating agencies, from which an explanation of the significance of their
ratings may be obtained. There is no assurance that these ratings will continue for any given period of time. The ratings may be
revised or withdrawn entirely by the rating agencies if, in their respective judgments, circumstances so warrant. Any downward
revision or withdrawal may adversely affect the market price of Pinnacle West’s or APS’s securities and/or result in an increase in the
cost of, or limit access to, capital. Such revisions may also result in substantial additional cash or other collateral requirements related to
certain derivative instruments, insurance policies, natural gas transportation, fuel supply, and other energy-related contracts. At this
time, we believe we have sufficient available liquidity resources to respond to a downward revision to our credit ratings.
Moody’s Standard & Poor’s Fitch
Pinnacle West
Corporate credit rating A3 A- A-
Commercial paper P-2 A-2 F2
Outlook Stable Stable Stable
APS
Corporate credit rating A2 A- A-
Senior unsecured A2 A- A
Commercial paper P-1 A-2 F2
Outlook Stable Stable Stable
Off-Balance Sheet Arrangements
See Note 18 for a discussion of the impacts on our financial statements of consolidating certain VIEs.
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