Does the U.S. government guarantee TVA securities?
TVA’s rated bonds receive the highest rating from Moody’s Investors Service, Standard & Poor’s, and Fitch Ratings (Aaa/AAA). TVA bonds and notes are backed solely by the net power proceeds of the TVA power system. They are not obligations of, nor are they guaranteed by, the U.S. government. TVA offers a variety of bondholder protections, including the requirement that power bonds and discount notes be given first pledge of payment from net power proceeds and the requirement that TVA charge electricity rates sufficient to ensure, among other things, the full payment of annual debt service.
