Bangkok--8 Nov--Standard & Poor's
Standard & Poor's Ratings Services has revised its outlook to positive from stable on Pima County, Ariz.'s existing sewer system revenue bonds. At the same time, Standard & Poor's assigned its 'A+' long-term rating to the county's series 2011B sewer system revenue bonds, which is on par with the 2011A bonds and 2010 obligations. Standard & Poor's also affirmed its 'AA-' rating on the county's (prior lien) sewer improvement and refunding revenue bonds.
"The positive outlook reflects our view that we could raise the ratings during the next two years if rate increases proceed as planned and debt service coverage excluding cash balances and liquidity levels are in line with what we consider a reasonable forecast," said Standard & Poor's credit analyst Joseph Pezzimenti. "Further supporting the outlook and ratings is our expectation that the utility's finances will be less reliant on connection fees and nonrecurring revenue sources and rate increases will allow it to build a sizable cash balance after reserves," Mr. Pezzimenti added.
A subordinate lien on sewer system net revenues and unrestricted cash balances secure the proposed bonds. Bond proceeds will fund construction, expansion and improvement of sewer treatment facilities and conveyance systems for the system
The Pima County Regional Wastewater Reclamation Department provides wastewater collection and treatment services to 264,882 customers in the Tucson metropolitan statistical and outlying service areas.
If the utility's financial performance deviates materially from its forecast, we would revise the outlook to stable.
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 atwww.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site atwww.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ola Fadahunsi, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Joseph J Pezzimenti, New York (1) 212-438-2038
Paul Dyson, San Francisco (1) 415-371-5079