Bangkok--20 Apr--Standard & Poor's
Standard & Poor's Ratings Services has raised its ratings on Centennial Water and Sanitation District, Colo.'s water and sewer revenue bonds to 'AA+' from 'AA-' based on the continuation of financial performance it deems strong, as well as limited future debt needs. The outlook is stable.
Additional factors supporting the rating include:
An affluent underlying customer base,
Competitive rates, and
Sufficient water supply and treatment capacity.
The rating is limited, in Standard & Poor's view, by some reliance on capacity fees, but reliance on these has been decreasing steadily over time. For example, in 2010, capacity fees were just $2.1 million, down from $7.0 million in 2006.
"We expect that the district's financial operations will remain strong, supported by implementation of regular rate increases and the general strength of the district's economic base," said Standard & Poor's credit analyst Scott Garrigan.
Net revenues of the district's water and wastewater system, including one-time connection fees, secure the bonds.
Centennial Water and Sanitary District provides water and sewer services to two local governments--Highlands Ranch Metropolitan District and Northern Douglas County Water and Sanitation District--under service agreements. The district serves a total population of about 98,000 with a customer base of about 39,000. Residential accounts represent about two-thirds of water use.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Key Water And Sewer Utility Credit Ratio Ranges, Sept.15, 2008
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 subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.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:
Edward Sweeney, New York (1) 212.438.6634,
[email protected]
Analyst Contacts:
Scott D Garrigan, Chicago (1) 312-233-7014
James Breeding, Dallas (1) 214-871-1407