Positive: MWA Maintains Solid Credit Rating

By Staff Reports

(Victor Valley)–Shockwaves are still reverberating over the recent downgrade of the U.S. Government’s credit rating from ‘AAA’ to ‘AA+’ by ratings agency Standard & Poor’s. The two other major ratings agencies, Moody’s Investor Service and Fitch Ratings, choose to maintain the United States’ AAA rating.

Fitch, headquartered in New York and London, as part of what it calls its ongoing surveillance efforts, reaffirmed Mojave Water Agency’s original ‘AA’ ratings because it determined the Agency provides a high degree of revenue stability. “We are pleased to learn that our status has not changed given all the volatility in the financial markets,” said Art Bishop, MWA Board President. “Like other public agencies MWA has had to tighten its belt and reduce expenses, and the Agency adopting and following a Financial Strategic Plan in 2006 helped put us in this position.”

Mojave Water Agency (MWA), currently has $38 million in water revenue certificates of participation (COPs) which were rated by Fitch. Fitch cited the fact that MWA’s capital plan for the next five years, not including water purchases, is very manageable, totaling approximately $67 million and requiring no additional debt. As a result the ratings agency concluded overall debt levels per capita are low at about $207 and expected to decline due to the lack of additional borrowing plans.

“MWA has demonstrated a very proactive management practice of long-term water resource planning as evidenced by an adequate water supply to meet future needs through 2044,” said Shannon Groff, Primary Analyst at Fitch, Inc. in San Francisco.

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