Bangkok--19 Mar--Standard & Poor's
Standard & Poor's Ratings Services raised its underlying rating (SPUR) on Kern Delta Water District, Calif.'s general obligation (GO) refunding debt three notches to 'A' from 'BBB' based on what Standard & Poor's considers the district's good finances. The outlook is stable.
In addition, the rating reflects Standard & Poor's opinion of the district's:
Strong liquidity with more than 300 days' of operation's cash on hand historically;
Concentration among the 10 leading water revenue producers; and
Agricultural economy with, what Standard & Poor's considers, adequate income indicators.
The stable outlook reflects the district's good financial performance and agricultural economy.
"It is our belief that the district's finances will remain good and that the district will collect sufficient property tax assessments to make debt service payments," said Standard & Poor's credit analyst Lisa Schroeer.
The district encompasses an area of approximately 17 miles by 22 miles (128,000 acres) of agricultural land in Kern County, south of Bakersfield. County income levels are adequate with median household income at 90% of the national average.
RELATED CRITERIA AND RESEARCH
USPF Criteria: GO Debt, Oct. 12, 2006
USPF Criteria: Location, Location, Location: What Does It Mean For My Community's Rating?, April 22, 2008
USPF Criteria: Key Water And Sewer Utility Credit Ratio Ranges, 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:
Lisa Schroeer, Charlottesville (1) 434-220-0892
Ian Carroll, San Francisco (1) 415-371-5060