Bangkok--22 Jun--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA-' rating, with a stable outlook, to Skyway Water and Sewer District, Wash.'s series 2010A and B water and sewer revenue bonds.
"The rating reflects our opinion of the district's established service area in the center of the Seattle region, with minimal growth pressures; pattern of strong fixed-charge debt service coverage, which we expect will continue due in part to the presence of subordinate-lien obligations; demonstrated willingness to adjust rates to meet operating and capital needs; and reliance on wholesale providers for most water supply and for wastewater treatment, which reduces the scope of potential capital needs," said Standard & Poor's credit analyst Chris Morgan.
We understand that proceeds will refund the district's series 1998 revenue bonds, upgrade existing water well and treatment facilities, and replace certain sewer mainlines and manholes.
The district provides water and wastewater collection services to a 12,550-resident, largely unincorporated service area that is located just southeast of Seattle and partially overlaps with the City of Renton.
The stable outlook reflects our view that rate increases in recent years have generated sufficient operating margins for the district to comfortably absorb the net increase in debt service associated with the series 2010A and B. At the same time, we believe that continuing strong financial performance will likely require at least nominal adjustments to keep pace with the carrying charges associated with future debt issuances, should they occur.
RELATED CRITERIA AND RESEARCH
USPF Criteria: Key Water And Sewer Utility Credit Ratio Ranges, Sept.15, 2008
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:
Chris Morgan, San Francisco (1) 415-371-5032
Misty Newland, San Francisco (1) 415-371-5073
Key Contacts:
Americas Media Relations: (1) 212-438-6667
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Americas Customer Service: (1) 212-438-7280
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