Bangkok--3 Aug--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AAA' rating, and stable outlook, to the Metropolitan Wastewater Reclamation District, Colo.'s series 2009A (tax-exempt) and 2009B (taxable direct payment Build America Bonds), in the amount of $250 million. At the same time Standard & Poor's raised its rating on the district's $55.0 million parity bonds outstanding to 'AAA' from 'AA+'.
"We base the upgrade on what we view as the district's strong competitive wholesale position and expected strong financial results," said Standard & Poor's credit analyst David Hitchcock. "The stable outlook reflects what we see as the continued creditworthiness of the largest member municipalities."
Standard & Poor's expects the internally funded capital improvement program to remain manageable and rates to remain competitive. We expect coverage to remain sufficient to cover debt service without connection fees. We also believe coverage levels will remain strong even in the event of moderate additional debt issuance, and as the district continues to implement projected rate increases to fund future capital costs.
The bonds are secured by the district's net revenues, which are derived from service contracts with 22 member municipalities and 25 other municipal connectors and special districts.
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:
David G Hitchcock, New York (1) 212-438-2022
Matthew Reining, San Francisco (1) 415-371-5044