Bangkok--30 Jul--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AAA' long-term rating, and stable outlook, to Southern California Metropolitan Water District's (MWD) $89.2 million series 2009D, $170.835 million series D Build America Bonds, and $79.165 million series E (2008 Authorization) water revenue bonds. At the same time, Standard & Poor's affirmed its 'AAA' long-term rating and underlying rating (SPUR), with a stable outlook, on the district's parity long-term debt.
A first lien on net operating revenue secures the bonds.
The district plans to use proceeds of the series 2009 bonds to refund existing debt as well as provide new money; the Build America Bonds will not have a debt service reserve.
"We expect that strong debt service coverage and prudent management by MWD's staff and board will continue, and that Southern California's dependence on MWD for water is likely to grow," said Standard & Poor's credit analyst Ian Carroll. "We also expect that MWD will meet the challenges and large capital costs associated with finding additional water supply sources."
MWD is the primary wholesaler of water to 26 member agencies serving more than 18 million people in Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura counties in southern California; the district provides 40%-60% of the water within its service area, depending on weather conditions. MWD receives its water from two sources of supply: the Colorado River and state water project water from northern California.
RELATED RESEARCH
USPF Criteria: "Standard & Poor's Revises Criteria For Rating Water, Sewer, And Drainage Utility Revenue Bonds," Sept. 15, 2008
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Ian Carroll, San Francisco (1) 415-371-5060
David G Hitchcock, New York (1) 212-438-2022
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]