City Gets Updated Water Credit Rating
July 3, 2013
Standard & Poor’s Ratings Services, one of the world’s leading independent credit rating agencies, issued the City of Oceanside’s Water Revenue Refunding Bonds an 'AA+' with a stable outlook. The existing water debt did not previously have an underlying credit rating.
According to S&P, a credit rating is Standard & Poor's opinion on the general creditworthiness of an obligor, or the creditworthiness of an obligor with respect to a particular debt security or other financial obligation. An “AA+” rating indicates a very strong capacity to meet financial commitments. The City is thrilled with the rating which is slightly higher than the sewer utility rating we received earlier this year. This reflects positively on the City of Oceanside and ultimately translates to savings for Oceanside customers.
On June 26, 2013, the City Council authorized the issuance of Water Revenue Refunding Bonds in the amount of $23,000,000 to refinance existing debt and issue $11,700,000 in new debt for recycled pipelines; reservoir upgrades, technology improvements and a new operations building for the Mission Basin Groundwater Purification Facility. The estimated savings over the life of the debt is $615,000. This spring, S&P raised its rating on the City of Oceanside’s Sewer Revenue Refunding Bonds from ‘A+’ to ‘AA’, a two-notch rating increase with $3.4M in savings over the life of the debt.
Since 2009 the City Council has taken a proactive approach to infrastructure and has passed the necessary rate increases to ensure adequate bond coverage and funding for infrastructure.
For additional information please contact Cari Dale, Water Utilities Director, at (760) 435-5827.
( News Release )