Strong financial policies and multi-year resource planning are foundation of recent positive ratings from S&P, Moody’s and Fitch
Thanks to the responsible management of its finances and resources, the Metropolitan Water District of Southern California has once again received excellent credit ratings from the nation’s top rating agencies. Following recent rating actions by S&P of AAA/stable and Moody’s of Aa1/stable for Metropolitan's recent $258.4 million Series 2023A revenue bond transaction, Fitch Ratings announced last week a AA+/stable rating for Metropolitan.
The ratings reflect the continued strength of Metropolitan’s underlying financials and investor confidence in the agency’s comprehensive long-term strategy for the management of the region’s water resources, in response to drought and climate change.
“Our General Manager Adel Hagekhalil, his financial team and the board have done an exceptional job keeping Metropolitan on sound financial footing as we make needed investments to maintain our infrastructure and manage future supplies in the face of climate change,” board Chair Adán Ortega, Jr. said. “These high credit ratings not only position us favorably for future business activities and investments, but also support the credit ratings of our member agencies.”
The rating agencies cited Metropolitan’s manageable annual rate increases; responsible financial practices to handle annual volatility in water sales; and smart investments in storage, demand management and new supplies like recycled water to address variable precipitation.
“As we develop strategies to ensure Southern California has the water it needs in the face of climate change, we know we are going to have to make more investments in large-scale local supplies, storage and conveyance projects across the region,” Hagekhalil said. “We must continue to be responsible in our use of debt to fund these long-term projects that will better prepare us for the challenges ahead.”
View source version on businesswire.com: https://www.businesswire.com/news/home/20230627514323/en/
Contacts
Rebecca Kimitch, (213) 217-6450; (202) 821-5253, mobile; rkimitch@mwdh2o.com
Maritza Fairfield, (213) 217-6853; (909) 816-7722, mobile; mfairfield@mwdh2o.com
