Moody’s Investors Service said it has affirmed its Aaa rating on Portland, Ore.’s water system senior-lien revenue bonds.
The action comes ahead of a planned $71.6 million bond sale, according to Moody’s. In all, the affirmation affects $320.4 million of outstanding senior-lien bonds.
The agency also affirmed its Aa1 rating on $60.6 million of outstanding second-lien bonds.
The outlook is stable for both series of debt.
Moody’s said in a release Friday that the rating reflects the strength of the water system in Portland’s metro area that has an ample supply of high-quality water, sound management, manageable debt levels.
It said the water system’s debt levels will increase substantially over the medium term as it upgrades to meet regulatory requirements.
Moody’s said it expects the city will continue to raise water rates to comply with its “stringent financial planning targets.”
