First Solar held its fourth quarter conference call today and made its usual announcements of stunning profits ($7.53 per share for the last four quarters), revenue growth (more than $2 billion for the fiscal year) and decreasing production costs (down to 80 cents per Watt). The company also made a lot of fuss over its credit rating, which it expects to give it a prominent competitive edge going forward.

Why would a solar company care much about its investment rating? Because First Solar is quickly morphing from a pure module manufacturer into a project developer. The company, for instance, is self-developing its 600 MW Sunrise and its 550 MW Topaz projects. In order to raise capital for such expensive endeavors, the company will soon start to borrow heavily. The cheaper the cost of capital (thanks to a quality investment grade debt rating), the more projects the company can build. The more projects that are built, the more modules will be sold.

Thus far, First Solar has amassed nearly $900 million in cash reserves. When asked what the company plans to do with the hoard, Chief Financial Officer Jens Meyerhoff said that it will stay in the bank. The cash cushion, he said, will help the company claim a high-grade investment rating. That rating will in turn make it easier for the company to borrow. "The cost of capital will increasingly be a significant portion of solar projects," Meyerhoff said.

So First Solar has successfully transformed from a scrappy startup to a successful manufacturer to a financially solid powerhouse. Maybe a dividend is next in store?