Joint Municipal Water and Sewer Commission receives bond rating upgrade
Lexington, SC - In a move that restructures debt and provides funding for new capital projects, the Joint Municipal Water and Sewer Commission is issuing a new series of revenue bonds in the amount of $44 million in December 2019. By refunding and defeasing outstanding water and sewer revenue bonds, the Commission will realize a savings of approximately $2.18 million and the return of approximately $566,000 in reserves. Additionally, the new revenue bonds will provide approximately $20 million for new capital projects.
As a result of strong financial planning and performance, the rating agencies have assigned an upgrade to the Commission’s bond rating.
Moody's Investors Service has upgraded Joint Municipal Water and Sewer Commission, South Carolina's (JMWSC) revenue rating to Aa2 from Aa3.
Moody’s report stated that the “Upgrade to Aa2 reflects JMWSC's long trend of strong financial performance, very healthy liquidity and demonstrated willingness to utilize its unlimited rate setting authority.”
S&P Global Ratings raised its long-term rating on the Joint Municipal Water and Sewer Commission, S.C.'s water and sewer system revenue debt to 'AA+' from 'AA.'
S&P’s report stated that “The upgrade is based on the Commission's improved financial profile, as evidenced by roughly doubling its liquidity position over the past five fiscal years to extremely strong levels and maintaining robust all-in debt service coverage (DSC) which we believe to be sustainable given its established track record of raising utility rates annually to support its capital improvement program (CIP).”
General Manager, Jay Nicholson says “Strong leadership and support from our commissioners and the management of our financial model have provided a favorable path for efficient performance. This is affirmation of our commitment to be good stewards of the community’s resources.”