GWA gets A- bond rating from S&P
The Guam Waterworks Authority today received an "A-" rating and A Stable Outlook from Standard & Poor's rating services for GWA Series 2013 Water and Wastewater System Revenue Bonds.
By KUAM NewsGuam - Just as lawmakers pass legislation to authorize its half a billion dollar bond, the Guam Waterworks Authority today received an "A-" rating and A Stable Outlook from Standard & Poor's rating services for GWA Series 2013 Water and Wastewater System Revenue Bonds.
According to S&P, the rating is based on GWA'S stable financial outlook, addressing huge operational milestones in its mandated court order, the support of the Public Utilities Commission, and the minimal dependence on Government OF Guam as a customer, as well as a closed flow of funds that precludes any transfer of surplus net revenues to the governor.
GWA noteS this not only was the first time S&P has rated the authority but that its "a-" rating is higher than the ratings currently provided by Fitch Ratings and Moody's which are "BB". Additionally the rating is five notches higher than the investment grade ratings previously given to GPA and GIAA by S&P.
"This is great news for our ratepayers as it will allow us to borrow money at a lower interest rate and of course pass those savings on to our community and thereby reducing future rate increases," Consolidated Commission on Utilities Chairman Simon Sanchez says.