Both Moody's and S&P Jump Portland Water District’s Bond Ratings to Aa3 and AA, Respectively, Providing Significant Savings
Recently both major credit rating agencies announced upgrades to the Portland Water District’s (PWD) bond rating. The upgrades reflect consistent practices of well-managed financial operations particularly in debt service and liquidity. Recent improvements as a result of deregulation from the Maine Public Utilities Commission were also noted.
Moody’s Investors Service raised Portland Water District’s rating one notch to the High Investment Grade range rating of “Aa3;” Standard & Poor’s Global (S&P) raised Portland Water District also into the High Investment Grade range, but by two notches, to an “AA.” S&P further denotes PWD’s strong financial performance is a result of robust service area penetration in the broad and diverse Greater Portland area; affordable rates and low poverty levels; and good operational management practices and policies.
As a result of the upgrade, PWD will save roughly $100,000 over the life of the $4 million bonds issued in 2016 and another $680,000 in refinanced bonds that take advantage of lower interest rates as well as the new credit rating. As new bonds are generated, ratepayers will benefit from additional savings.