Lower Rates sought in $31.47 Million Debt Refinancing
AUBURN, Calif. – The Placer County Water Agency (PCWA) is in the final stages of refinancing approximately $31.47 million of debt to take advantage of lower interest rates available in the market. The refinancing, which aims to save the Agency money, was discussed by PCWA’s Director of Financial Services, Joe Parker, at the March 15 meeting of the PCWA Board of Directors.
As part of the refinancing process, PCWA sought updated credit ratings from both Standard & Poor’s (S&P) and Moody’s Investors Service (Moody’s), two of the primary credit rating agencies that rate municipal bonds. S&P assigned its highest rating of AAA to the Agency’s 2018 Certificates of Participation, and reaffirmed its AAA long-term rating on PCWA’s previously issued certificates. Likewise, Moody’s assigned an Aa2 rating to the 2018 Certificates of Participation, and reaffirmed its Aa2 rating for the Agency’s previously issued certificates.
“We’re thrilled with PCWA’s continued high credit ratings,” Parker said. “Investors in next week’s bond sale will view these results very favorably, leading to lower interest costs for the Agency’s Water Division debt.”
S&P cited, among other factors, a broad and diverse service area, moderately-affordable water rates with demonstrated ability to increase rates, and strong operational management practices and policies in assigning its AAA rating. Moody’s report cited PCWA’s very strong debt service coverage and liquidity, large and growing water system with plentiful water supply, manageable debt levels, and strong rate management.
The next regular meeting of the PCWA Board of Directors will be held on April 5, 2:00 PM at the PCWA Business Center, 144 Ferguson Road, in Auburn. PCWA board meetings are open to the public.
For information on PCWA board meetings, please contact the Clerk to the Board at (530) 823-4850 or (800) 464-0030.
- Press Release