February 29, 2012

For Immediate Release                                                                                                                   

 

 

Contact:         James Korfonta,  Controller

                       

 

RE:    Standard and Poor’s Rating Services upgrades the bond rating on the Mohawk Valley Water Authority

 

 

Standard and Poor’s Rating Services has raised its rating on the Mohawk Valley Water Authority’s series 2008A water system revenue bonds from an “A” to an “A+”.   The upgrade reflects the Water Authority’s “continued strong debt service coverage and improving cash levels”.

 

The assigned rating is on the higher end of Standard and Poor’s rating scale indicating “a strong capacity to meet financial commitments”.

 

The Water Authority is expected to commence a new bonding in the near future to pay for several large capital projects including a new water tank near the southern reservoir and an automated meter infrastructure system.  This rating will mean a lower overall interest rate on these new bonds saving customers millions of dollars over the life of the new bonds. 

 

In addition, existing Water Authority bonds subject to refinancing could have significant savings as a result of this upgrade.

 

MVWA Executive Director Patrick Becher said “this fifteen-year-old initiative to regionalize a community asset has been a resounding success. We have a long-term focus on asset management and financial planning that has allowed us to continue preserving and improving the water system for future generations in a responsible and cost effective manner.”

 

Standard and Poor’s also cites a very diverse customer base serving Utica and other areas in Oneida County and Herkimer County, and ample water capacity to meet demand as additional strengths. 

 

Please click Here for the Standard and Poor’s full rating write-up.                  

 

The Mohawk Valley Water Authority is a regional agency that provides drinking water to approximately 126,000 customers throughout 18 municipalities in Oneida and Herkimer Counties. Contact the MVWA at 792-0301

 

                                                     Back