Two Top Rating Agencies Reaffirm Metropolitan’s Strong Credit Ratings
April 18 2024 - 7:14PM
Business Wire
Prudent financial policies, comprehensive resource planning in
district’s new biennial budget cited as foundation of ratings from
S&P, Moody’s
A week after its governing board adopted a financially
responsible two-year budget, the Metropolitan Water District of
Southern California has once again earned excellent credit ratings
from two of the nation’s top rating agencies.
In advance of Metropolitan’s pricing of approximately $360
million of senior lien revenue bonds next week, S&P Global
Ratings on Wednesday (April 17) reaffirmed Metropolitan’s AAA
rating and Moody’s recently reaffirmed the agency’s Aa1 rating.
Metropolitan board Chair Adán Ortega, Jr. attributed the ratings
to the continued financial strength and investor confidence in
Metropolitan’s long-term ability to deliver safe and reliable water
to Southern California, through strategic planning and resource
management.
“Maintaining Metropolitan’s fiscal integrity is of utmost
importance to our board as we help the region adapt to climate
change through investments in reliable water supplies,” Ortega
said. “High credit ratings are critical as we look to finance these
strategic investments."
With its AAA rating, S&P cited Metropolitan’s comprehensive
resource planning, well-defined risk-management practices and
financial policies. Moody’s recognized the agency’s recently
approved two-year budget, including rate increases and a planned
property tax increase, in reaffirming its Aa1 rating. The third top
rating agency, Fitch, is expected to provide a rating for
Metropolitan’s subordinate lien bonds late next month.
“Our board took bold action last week, adopting a budget that
raises needed revenues and balances cost containment measures with
the need to meet head-on the challenges brought by climate change
and rising costs due to inflation,” said Metropolitan Director Tim
Smith, chair of the board’s Finance and Asset Management Committee.
“These ratings validate that we are headed in the right
direction.”
Metropolitan General Manager Adel Hagekhalil agreed.
“As Metropolitan leads the way in climate adaptation, having
strong and reliable financial resources to invest in resiliency and
adaptation, while ensuring equity and affordability, is essential
to the future of the communities we serve, as we provide safe
reliable water for all with no one left behind,” Hagekhalil
said.
The Metropolitan Water District of Southern California is a
state-established cooperative that, along with its 26 member
agencies and retail suppliers, provide water for 19 million people
in six counties. The district imports water from the Colorado River
and Northern California to supplement local supplies, and helps its
members to develop increased water conservation, recycling, storage
and other resource-management programs.
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Rebecca Kimitch, (213) 217-6450; (202) 821-5253, mobile;
rkimitch@mwdh2o.com Maritza Fairfield, (213) 217-6853; (909)
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