Pasadena Water & Power Retains ‘AA+’ Rating on Water Revenue Bonds, Credit

Fitch Credit Ratings and Standard and Poor’s Global Ratings have both affirmed “AA+” bond and credit ratings for Pasadena Water and Power, according to city officials.

PWP officials recently submitted financial information for credit evaluation in anticipation of issuing a series of revenue and refunding bonds of up to $50,425,000 in November, according to a memo authored by PWP General Manager Gurcharan Bawa. The funding will be used for major capital improvements, as well as refinancing existing bonds at lower interest rates.

Fitch affirmed PWP’s Water Revenue Bonds with a rating of ‘AA+’ with a ‘positive’ outlook,” according to the memo. “Additionally, S&P Global affirmed PWP’s Water System credit rating of an ‘AA+’ with a ‘stable’ outlook.”

“While some municipal utilities have recently experienced a downgrade to their credit rating status, and the global pandemic has caused concern for financial stability throughout many sectors, PWP’s credit profile continues to receive high ratings,” the memo stated.

Investors use the rating to determine the relative risk and value associated with buying water system bonds, as well as determining the interest rate at which PWP must repay loans, Bawa explained.

“The impressive credit rating represents a significant accomplishment for PWP as it demonstrates that the water system meets strong financial and operational performance standards,” he said.