Bangkok--24 Dec--Standard & Poor's
Standard & Poor's Ratings Services raised its underlying rating (SPUR) to 'AA+' from 'AA-' R.E. Badger Water Facility Financing Authority, Calif.'s water revenue debt. The outlook is stable. The bonds are payable from revenue of the authority, consisting primarily of installment payments made to the authority by San Dieguito Water District (SDWD) and Santa Fe Irrigation District (SFID).
"Our raised rating is based on our view of the improved credit quality of the authority's participants," said Standard & Poor's credit analyst Misty Newland. "In our opinion, the rating is further supported by the districts' mature and affluent service areas, stable system operations, and limited capital needs."
SDWD, a subsidiary of Encinitas, Calif., provides water to more than 11,000 connections in Encinitas' coastal region. SFID provides water service to 7,291 connections in Solana Beach, Calif., Rancho Santa Fe, Calif., and portions of the gated community of Fairbanks Ranch.
The districts have traditionally derived about 20%-30% of their water supply from local sources, through water rights at Lake Hodges, with purchases from the San Diego County Water Authority accounting for the remainder. The availability of local water is rare among San Diego County Water Authority customers, and it allows the districts to keep their total water costs down.
Complete ratings information 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. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Credit Ratings Search.
Media Contact:
Edward Sweeney, New York (1) 212-438-6643, [email protected]
Analyst Contacts:
Misty Newland, San Francisco (1) 415-371-5073
Ian Carroll, San Francisco (1) 415-371-5060
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]