Credit rating agency Fitch Ratings published an advisory last week announcing that cybersecurity attacks and preparedness efforts “could pose financial and operating risks that ultimately affect utility credit quality.”
The agency said that unexpected costs related to cyber breaches could weaken liquidity and “constrain a utility's overall financial profile.” The advisory also noted that emergency efforts to prevent breaches could reduce reserves and dollars available to repay debt. Fitch is also concerned about breaches of customer data leading to the inability to read meters or access billing records. Related, flagging customer confidence in the utility could make raising rates more difficult. Breaches could also hamper the ability to comply with regulatory requirements.
The advisory also touches on post-attack costs and the diversion of infrastructure investment funds to cybersecurity mitigation efforts.
