Loudoun Water has retained its excellent AAA bond ratings from FitchRatings and Standard and Poor’s, and its Aa1 rating from Moody’s. In its report detailing its ratings, FitchRatings gave the utility its highest rating based on Loudoun Water’s “solid system management and prudent resource planning” and stated its “sound historical financial management has supported the system’s very affordable rate structure and provided solid debt service coverage.”
Standard and Poor’s cited Loudoun Water’s “affordable rates, autonomous rate-setting ability, and management’s demonstrated willingness to adjust rates to maintain strong financial margins.” It also detailed the utility’s strong financial performance, with “historically strong debt service coverage (DSC) and high liquidity levels” and “well-seasoned, experienced management team with a focus on long-range goals.”
Moody’s rating was based on Loudoun Water’s “strong financial position supported by ample liquidity and conservative management practices, healthy debt service coverage levels, and a manageable debt burden with limited exposure to variable rate debt.”
The ratings were released ahead of Loudoun Water’s competitive sale of $40,710,000 in refunding bonds to advance refund a portion of Loudoun Water’s outstanding Water and Sewer System Revenue Bonds, Series 2004. Eight bids were received and the lowest bid with a true interest cost of 3.097% was submitted by Wells Fargo Bank, N.A. The sale will save the utility more than $2.6 million dollars over the remaining life of the bonds.
“The confidence our rating agencies have in Loudoun Water is an affirmation of our efforts to enhance our sound financial performance and safeguard our customers’ investment,” said Dale Hammes, Loudoun Water General Manager. “Our staff works every day to proactively plan for future challenges and changing conditions while ensuring compliance with financial requirements.”