SSWD Credit Rating Upgraded
Sacramento – Standard & Poor’s Rating Services (S&P) raised Sacramento Suburban Water District’s (SSWD or District) stand-alonecredit rating to ‘AA+’ from ‘AA.’ As part of issuing the District’s Series 2012A revenue refunding bond, both S&P and Moody’s Investor Services (Moody’s) reviewed the District’s operations, financial position, water supply sources and future outlook.At the conclusion of that review, S&P upgraded the SSWD’s credit rating to “AA+” while Moody’s reaffirmed their credit rating of “Aa2.” SSWD is one notch below the highest credit rating of “AAA” awarded by S&P while Moody’s rating of “Aa2” is two notches below their highest credit rating of “Aaa”.
S&P’s credit analyst Paul Dyson stated, “The rating action reflects our view of the district’s continued very strong financial metrics, including strong coverage and liquidity, and reduced variable interest rate and swap exposure.”
The uptick in the District’s credit rating allows SSWD to pay a lower rate for borrowed money and thereby reduce the expense of serving water to customers. “By taking advantage of the favorable financing market couples with the elevated credit rating,” stated Tom Fellenz, SSWD Board President, “the District is able to secure long-term financing at near historically low levels. This will reduce pressure on rate increases to fund water system improvements and maintenance.”
This underlying credit rating upgrade elevates the District’s credit position and demonstrates the financial stability of SSWD.