Fitch Affirms Pima County Metro Water, Arizona Revs 'A+/A'; Stable Outlook
Source: Business Wire
--$6.8 million water revenue bonds, series 2002, rated 'A+';
--$14.0 million subordinate obligation revenue refunding bonds, series 2002, rated 'A'.
Both bonds carry a Stable Rating Outlook.
The ratings reflect the district's continued stable operating environment and manageable near-term capital needs. Financial performance remains sound with debt service coverage for fiscal 2006 equal to 1.9 times (x) for the senior bonds and 1.4x with subordinate bonds included, similar to historical levels. Liquidity for the same period was also good at around nine months for both days of cash and working capital. Near-term capital needs are around $17 million through fiscal 2011, with about 73% of funding sources to be provided by a loan from the Arizona's state revolving fund program which is scheduled to close later this year. Debt levels are and will remain elevated over the next few years and will likely rise further over the medium term as the district is expecting to issue debt sometime around or after fiscal 2011 for construction of a surface water treatment and distribution facility; the district currently relies on groundwater resources, but the water table is declining, necessitating treatment and use of the district's Central Arizona Project water for consumptive purposes.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contact:
Fitch Ratings
Doug Scott, +1-512-215-3725 (Austin)
Jose Acosta, +1-512-215-3726 (Austin)
Cindy Stoller, +1-212-908-0526
(Media Relations, New York)
