Bangkok--24 Dec--Standard & Poor's
Standard & Poor's Ratings Services said today it raised its ratings on 43 municipal waterworks, sanitary sewer, and/or drainage utility revenue bonds in Arizona, California, Colorado, Oregon, Utah, and Washington.
The upgrades are primarily based on Standard & Poor's recent criteria revision. In all cases, the rating outlook is stable.
"In general, we believe these utilities have strong finances, good economic fundamentals, and solid management," said Standard & Poor's credit analyst Misty Newland.
Western states face a diminishing water supply, coupled with a rising population. Drought in the Colorado River Basin and court-ordered restrictions on water deliveries from the Sacramento-San Joaquin River Delta in California to protect fish and wildlife have necessitated alternative water solutions; the construction of desalination and reclaimed water plants and water banking programs are a few of the alternatives that have gained popularity. Despite these endeavors, conservation efforts will persist and mandatory water restrictions might still be needed.
Standard & Poor's, however, believes that a well-planned rate structure can mitigate cyclical revenue trends resulting from reduced water usage. In addition, Standard & Poor's believes that the funding of capital programs for aging infrastructures in mature areas and new infrastructure for young growing communities will require proactive long-term planning.
Arizona's sole utility is Peoria. The California-based utilities are Carpinteria Valley Water District, Foresthill Public Utility District, Indio Water Authority, Madera Public Financing Authority, Martinez, Oakdale Public Financing Authority, Oxnard Financing Authority, Redding (sewer), Redding (water), Riverbank Public Finance Authority, San Bruno, San Dieguito Water District, San Luis Obispo (water), Santa Cruz (water system), Santa Cruz (storm water), Santa Cruz (wastewater), Santa Fe Irrigation District, Signal Hill (water), Sunnyvale, and Upland. Colorado's utilities are Castle Pines Metropolitan District and Lafayette. Oregon's utilities are Beaverton, Clackamas County Service District No. 1, Portland, and Tualatin Valley Water District. Utah's utilities are Clearfield City, Herriman, and Sandy City. Finally, Washington's utilities are Bonney Lake, King County Water District No. 49, Kitsap County, Moses Lake, Northeast Sammamish Sewer & Water District, Olympia, Poulsbo, Renton, Sammamish Plateau Water & Sewer District, Valley Water District, Washougal, Wenatchee (storm drain), and Wenatchee (water and sewer).
For more information on the upgraded issuers, see the article, "43 Western Water And Sewer Issuers Are Upgraded On Revised Criteria," to be published shortly on RatingsDirect. In addition, see the article, "Standard & Poor's Revises Criteria For Rating Water, Sewer And Drainage Utility Revenue Bonds," dated Sept. 15, 2008, on RatingsDirect.
The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected]. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Edward Sweeney, New York (1) 212-438-6643, [email protected]
Analyst Contacts:
Misty Newland, San Francisco (1) 415-371-5073
Gabriel Petek, CFA, San Francisco (1) 415-371-5042