The Oklahoma City Water Utilities Trust recently received a reaffirmation of its bond rating issued by S&P Global Ratings and Moody’s Investor Services.
Standard & Poor’s and Moody’s reaffirmed the AAA and Aaa ratings which put the Water Trust among the top 7% and 5%, respectively, for municipal water and wastewater utilities.
The reaffirmed ratings allow OCWUT to continue borrowing funds at the lowest interest rates, allowing the Trust to execute its 10-year, $3.3 billion capital plan for infrastructure reliability/resiliency improvements and water supply sustainability.
In its report, Moody’s commended OCWUT for its “history of solid operating results supported by proactive financial planning that has resulted in a healthy balance sheet with ample liquidity.” Moody’s also cited the Trust’s “very strong capital planning,” and the “stabilizing influence of the substantial institutional presence (military and state government) in the area.”
Standard & Poor’s assigned long-term rating of AAA to OCWUT’s water and sewer system revenue bonds outstanding, while also re-affirming its A-1+ short-term rating on OCWUT’s existing commercial paper program. The Standard & Poor’s ratings report cited OCWUT’s “robust management policies and asset adequacy [which targets] long-term water reliability and risk-resilient utility systems” and its “proactive financial and capital planning” as reasons for reaffirming OCWUT’s ratings.
“These reaffirmed ratings ensure we can continue working toward our long-term strategic goals of building resiliency in our water supply while also investing in the critical infrastructure needed to meet growing customer demand,” said Chris Browning, Utilities Director.
Source: City of OKC