Standard & Poor’s this week upgraded the underlying rating of Harnett County’s 2007 water and sewer system revenue bonds to AA-minus from A. The outlook is stable.
The agency also applied the new rating to taxable enterprise system revenue bonds the county plans on issuing next month.
Standard & Poor’s analyst Linda Yip said the upgrade reflects strong and stable debt service coverage and the maintenance of a healthy liquidity position.
The rating also reflects the county’s wide and expanding service area, competitive water and sewer rates, and limited future debt and capital needs. The strengths are offset by Harnett’s below-average income and above-average unemployment.
The bonds are secured by the net revenues of the water and sewer system. Proceeds will be used to expand the water treatment plant to build a transmission line to provide water to Fort Bragg. Proceeds will also be used to build a public works center.
