S&P Global Ratings reaffirmed Suffolk County Water Authority’s AAA bond rating for 2024. This designation means SCWA would benefit from the most favorable interest rates if entering the bond market to fund critical capital projects. Although SCWA says it does not anticipate needing to enter the market to borrow, this affirmation is a strong indication of the utility’s financial health. The independent rating agency reviewed SCWA finances, operations and strategies before reaffirming its AAA rating.
“We have a duty to our customers to be fiscally responsible and this reaffirmation shows that we are delivering,” said SCWA Chairman Charlie Lefkowitz. “S&P’s decision will benefit our customers. It means SCWA would receive the most competitive rates if borrowing which in turn keeps our costs under control.”
SCWA has used bond offerings in the past to fund key infrastructure projects such as new pipelines, wells and critical water treatment technologies that maintain the quality and safety of the public water supply.
“We are very proud of this reaffirmation because it’s a testament to the tough choices we have been making to keep our finances in order,” added SCWA CFO Christopher Cecchetto. “This AAA bond rating indicates that the agency believes we are headed in the right direction, and we could continue to enjoy a favorable borrowing rate. That is more important now than ever with rates as high as they have been. Our long-term strategy is paying off and that is a huge benefit to our customers.”
According to S&P’s report, SCWA boasts strong operational and financial management policies and procedures. They also cited its solid fiscal position, with robust coverage of debt service and high cash reserves. The report says that SCWA has maintained this strong position while also maintaining very affordable rates for customers.
About SCWA:
The Suffolk County Water Authority is an independent public-benefit corporation operating under the authority of the Public Authorities Law of the State of New York. Serving approximately 1.2 million Suffolk County residents, the Authority operates without taxing power on a not-for-profit basis.