Bangkok--17 Jul--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA+' rating to Las Vegas Valley Water District, Nev.'s $90 million limited-tax general obligation (GO) water bonds, series 2009A (taxable direct-pay Build America Bonds), and its 'AA+' rating to the district's $10 million limited-tax GO water bonds, series 2009B (tax-exempt). At the same time, Standard & Poor's affirmed its 'AA+' long-term rating and underlying rating (SPUR) on the district's outstanding GO bonds. The outlook is stable.
"The rating is based on the district's critical role as the sole water wholesale entity serving Nevada's largest metropolitan area," said Standard & Poor's credit analyst Paul Dyson. "We believe that the district will manage through the current economic and financial challenges given its good financial management practices, water and tax rate flexibility, and its ability to adjust discretionary spending, and the cash reserves it has built up over several years of strong operating results act as a important credit cushion."
The bonds are being issued to partially fund the district's Intake No. 3 Project, a third deep water intake in Lake Mead that is designed to protect municipal water customers from water quality issues and reduced system capacity issues related to declining water levels in Lake Mead.
The district operates and maintains the Southern Nevada Water System as agent for the Southern Nevada Water Authority. The district encompasses more than 99% of Clark County's tax base and serves all but a fraction of the county's 2.1 million residents, or about three-fourths of the state's 2.7 million residents.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
USPF Criteria: "Key General Obligation Ratio Credit Ranges — Analysis Vs. Reality," April 2, 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 RatingsDirect subscribers 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 Find a Rating.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Ian Carroll, San Francisco (1) 415-371-5060