Bangkok--19 May--Standard & Poor's
Standard & Poor's Ratings Services said it raised its rating to 'AAA' from 'AA' on the outstanding parity bonds and prior first-lien water revenue bonds issued by Denver City & County on behalf of the Denver Board of Water Commissioners, Colo.
We also raised to 'AAA' from 'AA-' the rating on the water board's outstanding certificates of participation (COPs) series 1998 and 2001, which are secured by lease revenues, subject to annual appropriation, on the city's Moffat and Marston water treatment plants. The rating on the lease revenue COPs has been raised to the same level as the revenue bonds to reflect our view that debt service on these COPs must be paid as an operating cost of the water system, since leased facilities are an essential component of the infrastructure necessary to produce water revenues.
We also assigned a 'AAA' rating to the master resolution water revenue bonds, series 2009A.
"The upgrades are based on what we believe to be a strong and diverse economic base, strong historical coverage of future maximum annual debt service, relatively modest future capital needs, and reasonable rates," said Standard & Poor's credit analyst David Hitchcock.
The pledged water system covers 336 square miles and serves a population of about 1.15 million, including the city of Denver and various outlying cities and water districts.
RELATED RESEARCH
"Standard & Poor's Revises Criteria For Rating Water, Sewer, And Drainage Utility Revenue Bonds," Sept. 15, 2008
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