NEW YORK - Moody's Investors Service said it has upgraded the rating to Aa3 from A1 on the town of Mooresville Enterprise Systems, N.C.'s $77 million of outstanding debt. Concurrently, Moody's has assigned a Aa3 rating to the Mooresville $31.9 million enterprise systems revenue refunding bonds, Series 2012.
The bonds are secured by a pledge of water and sewer system net revenues.
The Aa3 rating reflects the utility's growing service area, sound financial operations, demonstrated history of rate increases, and a manageable debt position. Legal provisions are adequate and include a 1.1 times rate covenant from operations (1.2 times including use of 50% of the system's surplus fund) and a 1.2 times additional bonds test. Series 2012 bond proceeds will refinance portions of the enterprise system Series 2003 and 2004 bonds for net present value savings.
