ATLANTA — Brunswick County, N.C., was upgraded to A2 from A3 by Moody’s Investors Service ahead of its planned sale this week of $54 million of enterprise revenue bonds.
The bonds will be used to fund projects for the county’s water and sewer system. They will be issued by the Brunswick County Water and Sewer Enterprise.
Elizabeth Bergman, an analyst for Moody’s, said the upgrade stemmed from the county’s rapidly developing population and economy — resulting in a more than doubling of system customers since 2003 — strong coverage, and healthy cash position. In a rating report, Bergman said the A2 rating considered the system’s plans for additional debt.
“The A2 rating also factors the system’s plans for additional debt, which would more than double the currently low debt position, over the next five years and satisfactory protections for bond holders,” Bergman said.
The upcoming issue will provide the West Brunswick Regional Water Reclamation Facility with about $20 million for its expansion efforts.
According to Moody’s, the bonds are secured by the net revenues of the combined enterprise system. Legal provisions for bondholders also include a covenant to maintain rates sufficient to provide net revenues equal to 120% of senior-lien debt service.