Moody’s Assigns Aa3 Issuer Rating to West Columbia, SC W&S Ent.
West Columbia, SC – The City of West Columbia’s SC Water and Sewer Enterprise (SC W&S Ent.) has received a positive credit rating of Aa3 from Moody’s Investors Service. SC W&S Ent. services 19,700 water and 11,500 sewer customers located within the City and unincorporated areas of the county.
Last month, the City applied for a credit rating from Moody’s on its SC W&S Ent. The City also made a formal presentation to Moody’s highlighting the demographics of the City/service area, the makeup of SC W&S Ent, and the historical and projected financial results of the system.
After reviewing the City’s annual audits, bond documents and Water and Sewer System-related materials, Moody’s assigned SC W&S Ent. the Aa3 rating and noted the following credit strengths:
Stable customer base located within Columbia MSA
Sound financial metrics with stable cash
Long-term contracts with top users that include capital cost sharing terms
Well established asset management plans
Strong willingness to keep rates in pace with O&M and capital needs
The Aa3 Issuer Rating is in the second highest rating category and is the fourth highest credit rating overall.
“This positive analysis applauds the financial stability and creditworthiness of our local Water and Sewer System,” said Mayor Bobby Horton.
The Issuer Rating is intended to be used as an assessment of the system’s financial strength and ability to honor its financial obligations and contracts. Going forward, the City will provide Moody’s with annual financial information and periodically participate in rating surveillance calls to maintain the positive rating.