Bangkok--20 Dec--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA-' long-term rating to the City of Kelso, Wash.'s $810,000 series 2010A water and sewer revenue bonds and $3.7 million series 2010B water and sewer revenue bonds (direct-payment, taxable Build America Bonds). The outlook is stable.
"The rating reflects our view of the city's primarily residential and stable customer base and access to the Cowlitz County economic base as well as employment opportunities in nearby Portland, extremely strong projected annual debt service coverage, very strong system liquidity, and competitive rates and recent demonstrated willingness and ability to adjust rates," said Standard & Poor's credit analyst Paul Dyson.
We understand that bond proceeds will be used to finance system upgrades and expansions.
Kelso has a population of 11,913 residents and is located along Highway 5, about 125 miles south of Seattle and 48 miles north of Portland. The waterworks utility consists of the city's water and sewer system. The system's service area encompasses 7.8 square miles, providing water system services to 4,725 customers and sewer system services to 3,938 customers.
The stable outlook reflects our expectation that recently implemented and planned rate increases will allow the city to maintain very strong coverage and liquidity. The residential nature of the customer base and Kelso's role as the county seat support the credit's stability, in our view, and help to offset credit concerns with regard to top customer concentration.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Standard & Poor's Revises Criteria For Rating Water, Sewer, And Drainage Utility Revenue Bonds, Sept. 15, 2008
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Adam Torres, New York (1) 212-438-2481