Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 309

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 309
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-term discount notes are not rated.  TVA and the owners of TVA securities could be impacted by any downgrades of TVA's credit ratings.  TVA Bonds are not obligations of the U.S.; however, because TVA is a wholly-owned corporate agency and instrumentality of the U.S. government, TVA's ratings may be impacted if the sovereign credit ratings of the U.S. are downgraded.  On November 10, 2023, Moody's revised the outlook on the U.S. government's credit ratings from stable to negative, and subsequently determined on November 13, 2023, to revise the outlook on TVA's ratings from stable to negative due to the change in the government rating outlook. On May 16, 2025, Moody's downgraded the U.S. government's credit rating from Aaa to Aa1, and on May 19, 2025, Moody's subsequently downgraded TVA's rating from Aaa to Aa1, and the outlook was revised to stable.  TVA was not required to post additional collateral due to the downgrade.  The outlook on the ratings of TVA is also currently stable with Fitch and S&P.  See Part I, Item 1A, Risk Factors — Financial, Economic, and Market Risks — TVA, together with owners of TVA securities, may be impacted by downgrades of TVA's credit ratings in the Annual Report.

Lease Financings.  TVA has entered into certain leasing transactions with special purpose entities ("SPEs") to obtain third-party financing for its facilities.  These SPEs are sometimes identified as VIEs of which TVA is determined to be the primary beneficiary.  TVA is required to account for these VIEs on a consolidated basis.  See Note 10 — Variable Interest Entities. 

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Summary Cash Flows 

A major source of TVA's liquidity is operating cash flows resulting from the generation and sale of electricity.  Cash, cash equivalents, and restricted cash totaled $522 million and $521 million at June 30, 2025 and 2024, respectively.  A summary of cash flow components for the nine months ended June 30, 2025 and 2024, follows:

     Cash provided by (used in):

Operating Activities.  TV