Fitch Ratings has once again affirmed the CAWCD revenue bonds with a stable “AA” rating and Issuer Default Rating (IDR) on CAWCD’s $35 million water delivery operation and maintenance revenue bonds, series 2016.
In addition, Fitch judged the outlook of the bonds to be stable.
What it means
According to the FitchRatings news release, the ‘AA’ bond rating and IDR reflect, “the district’s ‘Very Strong’ financial profile within the framework of ‘Very Strong’ revenue defensibility and ‘Very Strong’ operating risk profile, both assessed at ‘aa’.”
CAWCD fiscal adjustments to shortage
In addition, according to the release, the district “continues to adjust rates as necessary to align with its costs as it continues to experience reduced water deliveries. Despite the recent improvement in water levels at Lake Mead due (to) improved hydrology, the district expects to increase rates for fiscal 2024.”
To learn more about CAWCD Revenue Bonds, see section 7-11 of the 2024-25 Biennial Budget. CAWCD has maintained this secure rating since the issuance of the bonds in 2016.