Moody’s Investors Service analysts have decided to keep their short-term credit ratings on $185 million of East Bay Municipal Utility District revenue bonds following a change in standby bond purchase agreements.
The company affirmed its VMIG-1 rating on the San Francisco Bay Area utility’s water system subordinate revenue bonds issued in 2008.
The utility is substituting its current standby bond purchase agreements by RBC Capital and Barclays with new agreements with Wells Fargo Bank NA and U.S. Bank NA.
Moody’s said it will also keep the long-term ratings on the bonds. The substitutions were scheduled for Jan. 3.
The company said the short-term ratings on the bonds are based on the short-term ratings of the banks, the long-term rating of the bonds and Moody’s assessment of the likelihood of an early termination of the agreements without a mandatory tender.
“The likelihood of any such events occurring is reflected in the Aa1 long-term ratings assigned to the Bonds,” Moody’s said in the report Friday.