SCV Water’s credit rating upgraded by S&P

SCV Water logo
SCV Water Agency logo. Courtesy

News release 

Citing the Santa Clarita Valley Water Agency’s sophisticated management and diversified water portfolio, as well as the ability to maintain strong debt service coverage and operating reserves, Standard & Poor’s has upgraded or affirmed the agency’s credit ratings at the AA+ level for a number of bonds and senior-lien certificates of participation, including: 

  • Raised the long-term rating to AA+ from AA on the Upper Santa Clara Valley Joint Power Authority’s subordinate-lien revenue bonds, which are issued for SCV Water. 
  • Assigned a AA+ long-term rating to the USCVJPA’s anticipated $63.7 million series 2023 subordinate-lien revenue bonds. 
  • Affirmed a AA+ rating on SCV Water’s existing senior-lien COPs, as well as parity subordinate-lien COPs. 

Following its comprehensive review of SCV Water’s finances, S&P Global Ratings found that the agency’s operating revenues that are available for junior-lien payments are “very strong,” leading the firm to upgrade the rating for the associated bonds on the determination that S&P “no longer believe[s] junior-lien bondholders are materially disadvantaged relative to senior-lien bondholders.” 

“Achieving a AA+ credit rating across the board recognizes SCV Water’s strong financial footing and ability to pay debt,” Chief Financial and Administrative Officer Rochelle Patterson said in an SCV Water news release.  

S&P assigns ratings to companies using letter grades to communicate to investors how likely a borrower is to repay its debt. A rating of AA+ indicates the institution is financially strong and that associated investments have a very low chance of default.  

“These ratings will enable the agency to secure lower interest rates when financing capital improvement projects, which is a benefit to ratepayers as well,” added Patterson. 

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