Rancho California Water District Receives Highest Credit Rating

From Rancho California Water District:

S&P Global Ratings announced Wednesday, Sept. 21 that it has upgraded Rancho California Water District’s (RCWD/District) credit rating to AAA. The upgraded rating will benefit ratepayers as the District will incur lower financing costs. This marks the first time the district has achieved an AAA rating, the highest offered by S&P.

The ratings agency – one of the big three international ratings agencies— credited the upgrade to the district’s strong financial performance despite challenging drought conditions as well as affordable service rates and good operational management practices and policies.

S&P also noted strengths including a manageable five-year capital plan that does not require additional debt for the next four fiscal years and satisfactory resolution to the creation of the Santa Rosa Regional Resources Authority, which will facilitate required wastewater treatment plant upgrades.

“We are proud that RCWD’s conservative fiscal policies have been recognized by S&P, as a higher bond rating will bring real savings to our customers,” said Bill Plummer, RCWD Board president. “This upgrade is a testament to the well-founded board policies and principles guiding RCWD’s planning efforts.”

Achieving an AAA rating will benefit the district and its customers by allowing it to borrow money more easily and at lower interest rates with the savings being used to help fund additional infrastructure projects. The high rating will also increase the number and variety of investors willing to invest in the district’s bonds, creating enhanced opportunities for economic sustainability in Temecula, Murrieta and the surrounding area.

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