Standard & Poor's Ratings Services said it raised to A from A-minus its rating on the city of New Orleans' senior-lien sewer revenue bonds, issued for the Sewerage & Water Board of New Orleans (SWBNO).
It also assigned an A rating to the city's series 2014 sewer revenue and refunding bonds, issued for SWBNO. The outlook is stable for all ratings.
"The upgrade is based on what we believe is a well-detailed and comprehensive operational and financial plan to address the myriad of system needs," said Standard & Poor's credit analyst Theodore Chapman. "Given that a large part of the plan will be cost-shared with the federal government, we believe the system's strong financial capacity is sustainable, even with the expectation of additional debt on a regular basis not just through the five-year planning horizon but likely well beyond."
