PWP Receives an Upgrade Rating from S&P Global

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. While some municipal utilities have recently experienced a downgrade in their credit rating status, PWP’s credit profile has consistently received a rating of AA with a “stable” outlook from Fitch Credit Ratings (“Fitch”). This year, following a recent update to the credit rating agencies, PWP was awarded an upgraded status from Standard & Poors Global Rating (“S&P”), from AA- to AA rating. Both Fitch and S&P are nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission. These organizations provide credit ratings, commentary, research and analysis for organizations nationwide.

Per the S&P report, “The upgrade to AA rating reflects our opinion of Pasadena's strong service area that contributes to a competitive market position and the future flexibility to meet environmental requirements without negatively influencing the city's market position. The city's rate structure with prudent cost recovery supports very strong fixed charge coverage and extremely strong liquidity. Lastly, management demonstrates considerable acumen both financially and with respect to power supply planning."

To read the report, click here.