CHARLOTTE — Charlotte Water has secured the highest possible Aaa/AAA stable credit ratings for its water and sewer revenue bonds from Moody’s Investors Service and Standard and Poor’s (S&P), officials with the utility announced on Tuesday.
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This top-tier achievement reaffirms the utility’s strong financial health. These ratings represent the highest possible credit rating a utility can receive, Charlotte Water officials said in a news release.
The ratings reflect an evaluation of Charlotte Water’s financial strength, operational management and its readiness for an upcoming revenue bond issuance, the officials stated. Obtaining these ratings allows for lower interest rates when issuing revenue bonds and reduces overall debt service costs over the life of each borrowing cycle.
Key factors supporting the Aaa/AAA ratings include the essential nature of the service provided across a large and growing service area.
Strong financial metrics and proactive debt management, which includes timely and strategic rate adjustments, also contributed to the high ratings.
Officials stated that “maintaining this top-tier rating is a direct reflection of Charlotte Water’s ongoing commitment to sound fiscal management and responsible stewardship of ratepayer dollars.”
The ratings also recognized Charlotte Water’s long-range capital and financial planning, sufficient capacity in both water supply and treatment infrastructure, and strong management and governance practices.
These highest possible ratings align with the city of Charlotte’s financial management goals and policies. They reinforce Charlotte Water’s long-term financial strategies.
The Aaa/AAA credit ratings will support keeping customer rates and fees as affordable as possible, officials said. The ratings will also enable Charlotte Water to secure lower interest rates on future borrowing, which is expected to reduce overall debt service costs.