S&P Global issued the following excerpted press release on February 25, 2020.
Del Puerto Water District, CA Assigned 'BBB+' Issuer Credit Rating
CENTENNIAL (S&P Global Ratings) Feb. 25, 2020--S&P Global Ratings assigned its 'BBB+' issuer credit rating to Del Puerto Water District, Calif. The outlook is stable.
"The rating reflects our view of the district's strong enterprise risk profile and adequate financial risk profile, as demonstrated by very low industry risk as a monopolistic service provider of an essential public utility, strong all-in coverage metrics in recent years, and an adequate and volatile liquidity position," said S&P Global Ratings credit analyst Alexandra Rozgonyi.
The stable outlook reflects our view of the district's predominantly agricultural customer base that is reliant on regular water deliveries to maintain significant investments made in permanent crops, as well as our expectation that management will move forward with its partnerships in reservoir projects to increase water reliability. The outlook also reflects our expectation that management will review its rates, assessments, and charges annually to cover future debt obligations. During the two-year outlook period, we expect that the district will continue to monitor water supplies and generate revenues and assessments in an amount sufficient to cover its fixed expenses.
As of Feb. 28, 2018, the district had about $901,000 outstanding series 2005 State Water Resource Control Board loans.
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Clean Energy Capital serves as Financial Advisor to Del Puerto Water District.