UTICA, N.Y. – The Mohawk Valley Water Authority has received a bond rating increase for issuing revenue bonds expected to close on Nov. 5.
The rating, which comes from Moody’s Investors Service, moves MVWA from an A1 to an Aa3.
According to Moody’s, MWVA “benefits from a strong financial position marked by conservative budgeting.” MVWA also received a rating upgrade because of ample system capacity and expected near-term growth in the service area and customer base.
MVWA is set to close on its 2020 Bond Series which includes $15.2 million for several capital improvement projects during the next two to three years, and $10.9 million to refinance bonds that were issued on 2012 at higher interest rates. Refinancing the 2012 bonds will allow for $571,073 in savings over the remaining life of that debt.
According to MVWA, $7 million in matching borrowed funds will be combined with $3 million in state funding for a new raw water transmission pipe that will run from Hinckley Dam to the MVWA Water Treatment Plant in Utica.