Gainesville Regional Utilities (GRU) got a stable outlook rating from Moody’s Rating in an evaluation released last week, keeping the utility’s credit rating at the fourth highest Aa3 level. 

Moody’s report follows a similar grade by Standard & Poor’s in December and Fitch Rating in May. The three credit rating agencies identified similar pros and cons. Moody’s listed four of each.  

On the positive side, the report said GRU has a resilient service territory, diversified operations, a history of raising rates when needed and good liquidity (cash reserves). On the negative side, the report listed high debt leverage, affordability concerns for electric rates, ongoing legal challenges and a lack of debt service reserve fund requirement.  

Moody’s said the stable outlook includes an expectation that the transition to the state-appointed board, the GRU Authority, will progress without adverse impact on the credit profile. Intertwined in that expectation, the report said a factor that could lead to a downgrade would be “more aggressive demands for transfers to the city’s general fund.” 

In a press release, GRU noted that Moody’s relied on 2023 electric rates, but the GRU Authority voted to keep electric rates flat and make the utility more competitive with Florida peers. GRU also highlighted Moody’s perspective on overall bills. 

“GRU’s rate competitiveness is more favorable when looking at the average customer bill for all services, including water, wastewater, gas and telecommunication services,” the Moody’s report said, highlighting the higher electric rates but low rates for other services.  

GRU CEO Ed Bielarski emphasized the cost of the entire suite of services at past meetings. He said earlier this year that GRU’s average bill is competitive with other utilities when looking at all services and eliminating the city’s garbage collection charges. The GRU Authority voted in March to stop collecting the city’s garbage collection charges, a plan that likely wouldn’t begin until late 2026.  

GRU also continues to oppose the Gainesville City Commission and its steps to eliminate the state-appointed authority. The City Commission voted to host a special referendum in November 2025, asking voters if they want to eliminate the authority and return management control of the utility to the city.  

“While we still face challenges, Moody’s acknowledges that GRU management and the GRU Authority are working diligently to address and remedy long-standing issues,” Bielarski said in the press release. “This report affirms that we are on the right track.”