Bangkok--17 Nov--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA+' long-term rating to Moulton Niguel Water District, Calif.'s series 2009A and 2009B certificates of participation (COPs). The outlook is stable.
"The rating reflects our view of the district's strong financial position, which we believe is strengthened by planned water and sewer increases during the next three fiscal years, and very strong cash reserves," said Standard & Poor's credit analyst Li Yang. "Further supporting the rating is the district's mature and built-out residential community in Southern California's Orange County."
The district may issue a portion of the 2009 COPs as Build America Bonds (BABs), although we understand the district is still obligated to pay 100% of annual debt service regardless of receipt of the 35% interest subsidy.
The district's five-year capital improvement plan (CIP) totals roughly $66.9 million, of which roughly $48 million will be funded through the series 2009 COPs and the remainder funded with the district's current reserves. Bond proceeds will be used increase water reliability by constructing an interconnection pipeline to the neighboring Irvine Ranch Water District, and purchasing capacity rights to the Baker Water Treatment Plant and the Upper Chiquita Emergency Storage Reservoir.
The district provides water and sewer services to roughly 167,000 residents and covers the cities of Laguna Niguel, Aliso Viejo and portions of Laguna Hills, Mission Viejo and Dana Point. Situated in the southern portion of Orange County, the district is built-out and primarily residential with little fluctuation in the number of residents that reside within its boundaries.
RELATED RESEARCH
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 on the Global Credit Portal subscribers at www.globalcreditportal.com and 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. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Li H Yang, San Francisco 1-415-371-5024
Paul Dyson, San Francisco (1) 415-371-5079
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_
[email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]