Bangkok--8 Oct--Standard & Poor's
Standard & Poor's Ratings Services raised its long-term and underlying rating (SPUR) to 'AA+' from 'AA' on Olivenhain Municipal Water District, Calif.'s series 2006A revenue certificates of participation (COPS). The outlook is stable. At the same time, Standard & Poor's assigned its 'AA+' long-term rating and stable outlook to the Olivenhain Municipal Water District Financing Authority's series 2009 water revenue bonds, issued on behalf of the district.
"The raised rating is based on our opinion of the district's projected strong debt service coverage on the proposed series 2009 bonds and outstanding parity bonds," said Standard & Poor's credit analyst Misty Newland. "Further supporting the rating, in our view, are the district's adopted rate increases, which are approved for the next five years. We believe these increases will allow management to react in a timely manner to any unexpected changes in revenue or expenditure trends."
The district has indicated it plans to use the bond proceeds to fund the expansion of its treatment plant and various other projects.
The service area covers 48 square miles in northern San Diego County, including portions of the cities of Encinitas, Carlsbad, Solano Beach, San Marcos and San Diego, as well as the affluent unincorporated communities of Olivenhain, Whispering Palms, Fairbanks Ranch, Mount Israel, Elfin Forest, 4S Ranch, Santa Fe Valley, and large portions of Rancho Santa Fe and Cardiff. Residents have access to the diverse San Diego job base -- downtown San Diego is roughly 25 miles south -- along interstates 5 or 15. The district currently estimates its population to be 57,958.
The district owns and operates a water treatment plant and water reclamation plant that serves about 26,288 connections. The water reclamation plant provides about 2 million gallons per day (mgd) of non-potable water supply. The water treatment plants' rated capacity is 34 mgd, equal to about 104 acre feet per day.
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:
Misty Newland, San Francisco (1) 415-371-5073
Timothy Barrett, New York (1) 212-438-6327