Standard & Poor’s on Monday upgraded Norfolk’s water revenue bond rating to AA-plus from AA with a stable outlook.
“The upgrade reflects Norfolk’s continued solid financial performance and liquidity position, characterized by strong coverage ratios,” analyst Jennifer Rosso said. The upgrade also reflects continued strong management oversight practices.
The rating upgrade came in conjunction with Norfolk’s plans to sell $60 million of water revenue bonds on April 8. Standard & Poor’s assigned a AA-plus and stable outlook to the upcoming issue.
Proceeds will be used to support various capital improvements throughout the city’s water system, as well as to reimburse the city for past capital expenditures. The bonds are a limited obligation of Norfolk, payable from net revenues of the water system and reserves, according to the rating agency.
The stable outlook reflects the expectation that the system will maintain a strong financial position, characterized by solid coverage ratios and a solid liquidity position, while completing the capital improvement plan.
Fitch Ratings assigns a AA rating with a stable outlook to the debt. Moody’s Investors Service rates it A1.
