DC Water Secures 10 Consecutive Years of a “AAA” credit rating from S&P

The District of Columbia Water and Sewer Authority (DC Water) has once again secured high credit ratings from all three major rating agencies—S&P Global Ratings, Moody’s Investors Service, and Fitch Ratings—further strengthening our position as a national leader in public utilities. These ratings not only reflect confidence from the financial markets, but they also directly benefit our customers by supporting lower borrowing costs and more affordable water and sewer rates.

“These outstanding ratings are more than just a financial achievement—they’re a testament to our commitment to the communities we serve,” said David L. Gadis, CEO and General Manager. “Every dollar we save through prudent fiscal management and favorable bond rates is a dollar we can keep in the pockets of our customers. Our focus on strong governance and smart investment means we can keep rates stable, invest in critical infrastructure, and ensure safe, reliable service for everyone who depends on us.”

All three rating agencies— S&P, Moody’s and Fitch—highlighted several common strengths pointing to DC Water’s “strong financial profile” and “robust liquidity” while noting “independent rate-setting authority” as a key factor in fiscal resilience. DC Water was also acknowledged for its customer affordability and prudent management, recognizing long-term infrastructure investments and sound capital planning, including major initiatives like the Lead Free DC program and Clean Rivers Project.

S&P Global Ratings

S&P Global Ratings reaffirmed the ‘AAA’ rating on existing senior-lien bonds and assigned a ‘AA+’ rating to DC Water’s upcoming subordinate-lien bonds —recognizing exceptional management policies, strong financial performance, and the successful execution of a $9.7 billion ten-year capital improvement plan. S&P’s analysis highlighted DC Water’s integrated strategic planning, comprehensive rate structure, and customer assistance programs that keep rates affordable, particularly for those most in need. The agency also pointed out DC Water’s resilience in the face of economic headwinds, maintaining robust coverage and cash reserves despite regional job losses, and its strong governance as a credit strength that supports long-term sustainability.

Moody’s Investors Service

Moody’s Investors Service maintained its Aa1 (senior lien) and Aa2 (subordinate lien) ratings, underscoring DC Water’s strong financial metrics, stable service area, and excellent rate management. Moody’s pointed to the Authority’s consistent operating performance, healthy debt service coverage, and robust liquidity—well above policy targets. Moody’s noted the low long-term liability burden relative to peer cities, the Board’s independent rate-setting authority, and the presence of major institutional customers like the federal government, which provide a stable revenue base. The stable outlook reflects confidence in DC Water’s ability to manage rate adjustments and maintain healthy financials while investing in the system for future generations.

Fitch Ratings

Fitch Ratings gave DC Water a strong ‘AA’ rating to DC Water’s subordinate lien bonds and reaffirmed the ‘AA+’ rating on senior-lien bonds, along with a top-tier ‘F1+’ rating on commercial paper.  The rating recognizes the Authority’s strong financial profile, revenue flexibility, affordable rates, healthy income, and steady capital investments. Their “stable outlook” shows confidence that DC Water will continue to keep rates reasonable and invest in reliable service for the community.

Together, these high ratings from the “Big Three” signal to both the financial and bond markets—and to the residents and businesses we serve—that DC Water remains a model of fiscal health, operational excellence, and customer commitment. By maintaining strong credit, we can continue to deliver safe, reliable, and affordable water and sewer services, while investing in the infrastructure that keeps our region running strong.

For more information visit dcwater.com/finance.