Moody's Investors Service said on Thursday that it assigned an Aaa rating to Johnson County Water District 1, Kan.’s $107.4 million of Series 2017A water revenue refunding bonds and $38.6 million of Series 2017B water revenue bonds, expected to sell the week of Oct. 16.
Moody’s also upgraded the district's Series 2009, 2010, 2012, and 2014 bonds to Aaa from Aa1 and affirmed the Aaa rating on the district’s Series 2007 bonds.
After the sale, all of the district's Series 2007 bonds will be refunded with next month's bond issuance and all of itss outstanding bonds will be on parity.
Moody’s said the Aaa rating reflects the district's large, stable, and affluent customer base, well-managed financial operations including above average liquidity and coverage levels, and manageable debt burden with satisfactory legal covenants.
Moody’s said the outlook on the district remains stable.
“The stable outlook reflects that the system is the primary provider in a large and stable service area, as well as the expectation that the financial profile will remain healthy and the debt burden manageable despite a capital improvement plan that calls for cash and debt funding of large expenditures over the medium term,” Moody’s said in a press release.