Fitch Ratings said it downgraded to A-plus from AA-minus the following Mountain Regional Water Special Service District, Utah, obligations: $27.3 million water revenue refunding bonds, series 2012; $8.4 million water revenue refunding bonds, series 2009B.
The rating outlook is revised to stable from negative.
Fitch has withdrawn its ratings for the following district bonds due to prerefunding activity: Water revenue and refunding bonds, series 2003 (all maturities).
The bonds are secured by net revenues of the water system, including impact fees and special assessments. They are on parity with outstanding state loans.
The downgrade reflects the expectation that the narrowed margins experienced by the district the last several years will continue over the forecast period. These results are lower than historical averages, and when combined with the high debt burden, are more in line with the A-plus category.