Published : Monday, March 20, 2017 | 10:38 AM
Standard and Poor’s Global Ratings (“S&P”) recently upgraded the Pasadena Water and Power (“PWP”) water system credit rating from “AA” to an “AA+”. Fitch Ratings also affirmed PWP’s rating of ”AA+” with a Stable Outlook.
The credit rating represents a significant accomplishment for PWP as it demonstrates that the water system meets strong financial and operational performance standards, city officials said.
According to Gucharan Bawa, General Manager of Water & Power, the credit ratings are used by investors to determine the relative risk, the value of buying the water system bonds, and to determine the Interest rate which the entity will pay on loan. PWP is in its final stages of refunding 2007 Water Revenue bonds. The AA+ rating was a key component of ensuring the utility obtained a low interest rate that is expected to provide 1.2 million dollars in savings, over the ramining life of the bonds
As a non profit utility, PWP continues to offer its customers reasonable water and electric rates that are generally lower than investor owned utilities, Bawa said.
In November 2016, both Fitch abd S&P awarded PWP’s electric system with “AA” and “AA-” ratings and affirmed its Stable Outlook position. To view
the credit rating agency report issued by S&P and the press release issued by Fitch, visit http://PWPweb.com/News/