Mar 15,
2024

PWP’s Water Revenue Bonds Upgraded to AAA

S&P Global Rating logo and a stream

Standard and Poor’s recently updated PWP’s Water Revenue Bonds from AA+ to AAA, with a stable outlook. Standard and Poor’s is a nationally recognized statistical rating organization designated by the U.S. Securities and Exchange Commission. The organization is a credit rating agency that reviews the viability of investments and assesses an entity’s ability to meet financial commitments. Each year, municipal utility agencies throughout the nation, including Pasadena Water and Power (“PWP”), are assessed on credit worthiness, outstanding long-term and short-term debt, and newly issued revenue bonds.

The AAA rating is the highest ratings possible. The report notes the City's strength in developing local water supply sources and fostering local partnerships to enhance our long-term water supply resiliency. Additional highlights of the review include the underlying economic strength, diversity, and the wealth of the water utility's customer base, a healthy market position assessment, strong liquidity, and low outstanding leverage. Higher bond ratings mean lower financing costs in the future, and therefore better value for ratepayers.