Standard & Poor's Upgrades Metropolitan's Bond Rating to "AAA"
Source: Metropolitan Water District of Southern California
As Metropolitan prepares to price $400 million in fixed-rate revenue bonds next week, Standard & Poor’s Rating Services announced it has raised the district’s rating from “AA+.” Standard & Poor’s based its ratings on Metropolitan’s financial reserves, its ability to find and develop affordable water supplies, and the district’s capacity to cover debt service through wholesale water rates.
Metropolitan’s Chief Financial Officer Brian G. Thomas said that, with Standard & Poor’s upgrade, Metropolitan joins about 2 percent of all water and wastewater agencies nationwide to receive the “AAA” rating.
“This rating is a testament to our Board of Directors’ prudent financial policies, as well as its proven capability to respond to challenges,” Thomas said. “We’re proud to join an elite group of water agencies to be recognized with Standard & Poor’s highest rating.”
In raising Metropolitan’s rating, Standard & Poor’s also referred to the agency’s critical role as Southern California’s primary water wholesaler. Metropolitan, one of the nation’s largest wholesalers of treated drinking water, provides more than half the water used by 18 million Southern Californians.
Concurrent with Standard and Poor’s upgrade, Fitch, Inc. maintained Metropolitan’s bond rating at “AA+”, as did Moody’s Investors Service Inc. at “Aa2.”
Proceeds from Metropolitan’s upcoming bond sale will be used to help fund the agency’s ongoing $3 billion capital improvement program, which includes construction of the 45-mile Inland Feeder project, 6.5-mile Perris Valley Pipeline, ozone retrofits at district treatment plants, and improvements to the district’s Robert A. Skinner and Robert B. Diemer treatment plants in Riverside and Orange counties, respectively.
Bear, Stearns & Co. Inc. is the senior manager for Metropolitan’s bond sale, with Citigroup and Ramirez & Co., Inc. serving as co-senior managers. Public Resources Advisory Group is the financial advisor for the sale.
Contact:
Bob Muir, (213) 217-6930; (213) 324-5213, mobile