Fitch Ratings upgrades Town's Water Utility bond rating to 'AA'
Published on July 21, 2020
The Town of Oro Valley is pleased to announce that Fitch Ratings has upgraded the Town of Oro Valley’s Water Utility revenue bonds to ‘AA’ from ‘AA-‘ based on a criteria change. Fitch Ratings notified the Town of the upgrade on July 16, 2020.
“This speaks to the efficiencies the Water Utility has worked towards the last several years,” said Water Utility Director Peter Abraham. “This upgraded rating means lower interest rates if the Town borrows money for infrastructure projects. Ultimately, that makes our Water Utility more efficient and helps keep our expenses down.”
In its evaluation, Fitch Ratings noted “The current financial profile reflects improved performance over the past several years.” Per Fitch, the rating upgrade on the revenue bonds to ‘AA’ and assessment of its standalone credit profile at ‘aa’ are based on the application of Fitch’s new “U.S. Water and Sewer Rating Criteria” and reflects the water system’s very low leverage within the framework of very strong revenue defensibility bolstered by affordable rates and continued growth.
“The Town of Oro Valley is in good financial health. Last year, Standard & Poor’s upgraded the Town’s overall long-term bond rating to ‘AA+’, and now Fitch Ratings has upgraded our Water Utility revenue bond rating. These upgrades don’t happen without diligence and hard work. They happen because the Town is focused on good stewardship of its finances,” said the Town’s Chief Financial Officer David Gephart.
Click here to read the Fitch Ratings announcement
Fitch Ratings is an international credit rating agency based out of New York City and London. Investors use the company’s ratings as a guide to investments. Fitch is one of the top three credit rating agencies internationally, along with Moody’s and Standard & Poor’s.