Standard and Poor's upgrades Water Authority's bond rating

By WKTV News

UTICA, N.Y. - The Mohawk Valley Water Authority has received an upgrade on their bond rating from Standard and Poor's Rating Services.

Standard and Poor's Rating Services has raised its rating on the Mohawk Valley Water Authority's series 2008A water system revenue bonds from an "A" to an "A+". The upgrade reflects the Water Authority's "continued strong debt service coverage and improving cash levels," the rating service states.

The assigned rating is on the higher end of Standard and Poor's rating scale indicating "a strong capacity to meet financial commitments."

The Water Authoritiy said it is expected to commence a new bonding in the near future to pay for several large capital projects, including a new water tank near the southern reservoir and an automated meter infrastructure system. This rating will mean a lower overall interest rate on these new bonds saving customers millions of dollars over the life of the new bonds.

In addition, existing Water Authority bonds subject to refinancing could have significant savings as a result of this upgrade, the Water Authority stated in a release.

"This fifteen year old initiative to regionalize a community asset has been a resounding success," said Water Authority Executive Director Patrick Becher. "We have a long-term focus on asset management and financial planning that has allowed us to continue preserving and improving the water system for future generations in a responsible and cost effective manner."

Standard and Poor's also cites a very diverse customer base serving Utica and other areas in Oneida County and Herkimer County, and ample water capacity to meet demand as additional strengths.

The complete Standard and Poor's rating report can be viewed online here.

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