Bangkok--5 Jan--Standard & Poor's
Standard & Poor's Ratings Services raised its rating and underlying rating (SPUR) on Clean Water Services, Ore.'s existing senior-lien bonds to 'AA' from 'AA-'. Standard & Poor's also raised its rating and SPUR on Clean Water Services' subordinate bonds to 'AA-' from 'A+'. Finally, Standard & Poor's assigned its 'AA' rating to Clean Water Services' $60.4 million 2009A senior-lien sewer revenue bonds. The outlook is stable.
"The raised rating is based on the system's continued strong debt service coverage and liquidity position, continued rate increases, and healthy underlying regional economic base," said Standard & Poor's credit analyst Ian Carroll.
The system has raised rates each year, and historical net revenues available for debt service provide adequate 1.4x coverage of combined senior and subordinate debt service, while senior debt alone had a better 2x coverage level. As of fiscal 2008, the system had $42 million in cash, an amount that would be sufficient to fund 368 days of operations.
Bond proceeds will contribute to the system's capital project, which is related to environmental quality.
Clean Water Services, with approximately 511,000 customers, is a regional sanitary sewer system in western Portland suburbs.
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:
David Wargin, New York (1) 212-438-1579, [email protected]
Analyst Contacts:
Ian Carroll, San Francisco (1) 415-371-5060
Misty Newland, San Francisco (1) 415-371-5073