“AA-” Rating Increases District’s Ability to Invest in Future Capital Projects
Rowland Heights, CA (September 24, 2018) –Rowland Water District is pleased to announce that S&P Global Ratings has enhanced their already exceptional credit rating from “A+” to “AA-“. Credit ratings are one of several tools that investors use when making decisions about purchasing bonds and other fixed income investments.
“We raised the rating based on the district’s improved financial position and approved service rate adjustments through January 2021, which we believe will enable it to maintain a strong financial performance,” S&P Global Ratings described in its Pre-Publication Rationale. “In addition, to reduce its reliance on imported water, the district has entered into various agreements for both non-potable and potable water supplies. We understand that the district has purchased groundwater rights from neighboring groundwater basins and will continue making progress towards its water supply diversification projects in the future.”
Credit ratings play a pivotal role in enabling corporations and governments to raise money in the capital markets. Ratings are provided by financial analysts, who assess an entity’s financial condition, operation performance, policies, and risk management strategies.
“Our exceptional credit strength illustrates a growing capacity to meet our varied financial commitments, which translates into continued funding of the high-quality projects and initiatives our customers have come to expect from us,” says Tom Coleman, Rowland Water District General Manager. “We have a proven track record of progressive financial stewardship, and we are especially pleased that S&P highlighted our water supply planning principles and investment in local water supply reliability. That is a direct testament to the hard work of our staff and our Board of Directors.”
S&P Global Ratings also raised the credit status for Puente Basin Water Agency (PBWA) to “AA-“. PBWA is a Joint Powers Authority between Rowland Water District & Walnut Valley Water District created in 1971 for the protection and stewardship of the local, imported and recycled water supply within Puente Basin. Rowland Water’s positive financial outlook is directly tied to PBWA’s ability to finance bonds.
In addressing the District’s financial forecast, S&P continued, “The stable outlook reflects our view of the district’s diverse, primarily residential customer base and ample supply capacity. During the two-year outlook period, we anticipate that the district’s implementation of its new multiyear rate schedule, as approved by the district board, will support the district’s strong financial performance.”
Rowland Water is continually planning for drought events and future water usage demands, in part by safeguarding resources, setting stable rates and maintaining facilities. By using impaired groundwater and recycled water for non-drinking uses such as irrigation, construction, cooling towers, and industrial processes, the District continues to meet long-term demands while keeping costs low.