Despite challenging environment, CAWCD Revenue Bonds affirmed as stable

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on print
Share on email
Central Arizona Project canal

Fitch ratings have once again affirmed the CAWCD Revenue Bonds with a stable “AA” rating and Issuer Default Rating (IDR) on CAWCD’s $38 million water delivery operation and maintenance (O & M) revenue bonds, series 2016.

In addition, Fitch judged the outlook of the bonds to be stable.  The rating is a sign of reliable long-term expectation for the bond and of CAP’s resiliency during a challenging environment that includes impending water shortage and ongoing COVID-19.

Regarding a few of the key rating drivers, a portion of the Fitch report states that the CAWCD’s “operating cost burden is low” and is supported by a history of “adequate capital investments” and “robust cash balances”.

For more information on the CAWCD Revenue Bonds, see section 7-9 of the 2022-23 Biennial Budget. CAWCD has maintained this secure rating since the issuance of the bonds in 2016.