Fitch Ratings has affirmed the CAWCD 2016 Series revenue bonds with a “AA” rating.
According to the Fitch’s Rating press release, “The ‘AA’ water revenue bond rating along with the ‘AA’ IDR reflect the district’s ‘Very Strong’ financial profile in the context of its ‘Very Strong’ revenue defensibility and ‘Very Strong’ operating risk profile, both assessed at ‘aa’.”
Ratings rationale and outlook
In justifying the rating, the press release cited CAP’s capacity to absorb potential operating pressures. These pressures include, “managing reduced water deliveries, absorbing variability in power costs and pursuing additional opportunities to firm and augment the Central Arizona Project’s (CAP) water supplies.”
The release went on to say, “The district’s consistently very low operating cost burden and low life cycle ratio drive its very strong operating risk profile. Even with continued rate adjustments and reduced water deliveries, Fitch expects the district to maintain its very strong revenue defensibility and very strong operating risk profiles, both assessed at ‘aa’.”
More information
To learn more about CAWCD Revenue Bonds, see section 7-11 of the 2026-27 Biennial Budget. CAWCD has maintained this secure rating since the issuance of the bonds in 2016.
KRA: Finance
Maintaining long-term financial strength to achieve CAP’s goals and being prepared to address opportunities or challenges