BLACK HILLS CORP SD

Financing for operational needs and capital expenditure requirements, not satisfied by operating cash flows, depends upon the cost and availability of external funds through both short and long-term financing. In order to operate and grow our business, we need to consistently maintain the ability to raise capital on favorable terms. Access to funds is dependent upon factors such as general economic and capital market conditions, regulatory authorizations and policies, the Company’s credit ratings, cash flows from routine operations, and the credit ratings of counterparties. After assessing the current operating performance, liquidity, and credit ratings of the Company, management believes that the Company will have access to the capital markets at prevailing market rates for companies with comparable credit ratings. We note that credit ratings are not recommendations to buy, sell, or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating.

The following table represents the credit ratings, outlook and risk profile of BHC at December 31, 2024:

(a)

On May 9, 2024, S&P reported BBB+ rating and maintained a Stable outlook.

(b)

On January 8, 2025, Moody's reported our Baa2 rating and maintained a Stable outlook.

(c)

On January 17, 2025, Fitch affirmed its BBB+ rating for BHC and maintained a Negative outlook. Following the affirmation, the parties jointly withdrew the rating.

The following table represents the credit ratings of South Dakota Electric at December 31, 2024:

(a)

On May 9, 2024, S&P reported A rating.

(b)

On January 17, 2025, Fitch affirmed its A rating for South Dakota Electric. Following the affirmation, the parties jointly withdrew the rating.

We have not had any triggering events (i.e. an acceleration of repayment of outstanding indebtedness, an increase in interest costs, or the posting of additional cash collateral) tied to our stock price and have not executed any transactions that require us to issue equity based on our credit ratings.