Bangkok--9 Nov--Standard & Poor's
Standard & Poor's Ratings Services lowered its underlying rating (SPUR) to 'A' from 'A+' on Calaveras County Water District, Calif.'s outstanding enterprise revenue bonds. The outlook is stable.
"The lowered rating reflects our assessment of the drop in the district's one-time connection fees, which has put downward pressure on debt service coverage in fiscal 2009," said Standard & Poor's credit analyst Li Yang. "The rating is further pressured by the district's reduced rate raising flexibility, as it is three years into a five-year rate increase plan that will ultimately increase water rates by 80% and sewer rates by 50%."
"Management implemented the rate increases to mitigate the district's reliance on one-time connection fees."
The district provides water and sewer services to approximately 1,000 square miles in Calaveras County and the Sierra Nevada foothills. The district serves roughly 12,400 water connections and 4,500 sewer connections, which consist primarily of residential customers.
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:
Li H Yang, San Francisco 1-415-371-5024
Ian Carroll, San Francisco (1) 415-371-5060
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]