The Orange County Sanitation District received a AAA long-term rating and stable outlook from Standard & Poor’s on its $146.25 million Series 2011A wastewater refunding revenue obligations.
Standard & Poor’s credit analyst Paul Dyson cited the district’s strong historical and projected cash reserves, ability and willingness to increase rates, and monopolistic position as virtually the only provider of wastewater treatment for the cities it serves as the reason for the top rating.
The stable outlook reflected analysts’ anticipation that adopted rate increases will likely provide a strong cushion in both debt-service coverage and liquidity as the district continues to implement its capital outlay plans.
