Standard & Poor's Ratings Services raised its long-term rating and underlying rating (SPUR) on DeKalb-Jackson Water Supply District Inc., Ala.'s utility revenue debt one notch to A from A-minus.
The outlook is stable.
The upgrade reflects Standard & Poor's opinion of the recently consolidated system, which maintained good debt service coverage and liquidity in fiscal 2014, reflecting a more-stable financial profile.
"Due to the system's below-average income, above-average rates, and moderately high debt, we do not expect to raise the rating over the outlook's two-year period," said Standard & Poor's credit analyst Scott Sagen.
Pledged waterworks and distribution system net revenue secures the bonds. Officials used series 2013A bond proceeds to fund a $1.4 million payment to Bridgeport Utilities Board following the district's termination of its take-or-pay water supply contract with the board, as well as to finance $350,000 of certain system capital improvements.
