Standard & Poor's Ratings Services said it raised its rating on Florida Governmental Utility Authority's utility revenue debt, issued for Golden Gate Utility System, one notch to A-plus from A.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the system's continued good financial performance that the rating service believes is sustainable, evidenced by good debt service coverage and improved liquidity, following rate increases and cost controls.
At the same time, Standard & Poor's assigned its A-plus rating and stable outlook to the authority's $12.4 million series 2015 utility system refunding revenue bonds, issued for the system.
"Due to, what we consider, the system's high debt, we believe we will likely not raise the rating over the outlook's two-year period," said Standard & Poor's credit analyst Scott Sagen.
Net system revenue secures the series 2015 bonds. Pledged revenue includes net revenue and connection fees.
