Moody’s has upgraded Vernon Public Utilities (VPU) revenue bond rating to A3 from Baa1 and revised the outlook to stable. The last A3 rating for the utility was in March 2011. This upgrade is well deserved and is a testament to the work of the entire City team.

The upgrade reflects the utility's strong operating and financial performance in fiscal year 2025, with financial results showing material improvements over the prior year. Moody's has indicated its expectations are that VPU continue its positive trajectory. The rating incorporates the concentrated nature of Vernon's customer base, which is almost exclusively commercial and industrial - its top 20 customers account for approximately 50% of annual revenue.

In fiscal year 2025, the City provided electric service to 1,117 small industrial, 445 large industrial, and 149 commercial, residential, and other customers. Vernon's customers have heavy concentration in the food processing, chemical processing, and container packaging sectors. The electric enterprise is part of Vernon Public Utilities, which also oversees water, gas and fiber optic funds.

Moody's press release discusses the rating upgrade in further detail.