All Three Principal Credit Rating Agencies Demonstrate Confidence in DC Water
The three principal credit rating agencies confirmed their trust in DC Waters financial management with credit rating upgrades or reaffirmations. Standard and Poors Investors Service (S&P) upgraded DC Waters credit rating to AA+ for senior lien revenue bonds and AA for subordinate lien revenue bonds. Fitch Ratings reaffirmed AA for senior lien revenue bonds and AA- for subordinate lien revenue bonds. Both agencies continue to rate DC Water with a stable outlook. Moodys also reaffirmed their ratings of Aa2 for senior and Aa3 for subordinate lien revenue bonds.
DC Waters capital improvement projects leverage debt financing for funding. Paying lower interest rates lowers the overall costs of the project and annual operating expenses. Credit rating agencies opinions affect the interest rates that DC Water pays when going to the bond market.
Rating upgrades are a positive sign that we remain on the right track, said DC Water General Manager George S. Hawkins. Not only is this good news for DC Water, but also for our customers who benefit when we pay lower interest rates.
The upgrade comes on the heels of a visit to DC Water in February and a review of DC Waters financial management as well as the industry and regional outlooks. Fitch cited as key drivers a stable service territory boasting a strong economy and strong financial management that ensures regulatory compliance and healthy financial performance.
This is a strong indication of the confidence of the credit market in our sound credit fundamentals. We will continue to uphold the trust and credibility bestowed on us by the credit market, added Olu Adebo, DC Water Chief Financial Officer.
In 2010, the Authority had tremendous success going to the bond market, with all $300 million in bonds sold to retail and institutional investors in one day. DC Water plans to market $300 million in a new money deal and reissue $170 million in debt next week.
For more information on Fitch Ratings reaffirmation, please visit http://www.businesswire.com/news/home/20120306007002/en/Fitch-Rates-Dis…
For more information on the DC Water bond sale next week please visit dcwater.com/investor
