Moody's Investors Service said it has upgraded to Baa1 from Baa3 the rating on Upper Trinity Regional Water District, Texas's outstanding Northeast Regional Water Reclamation bonds and assigned a Baa1 rating to the district's $15.3 million Northeast Regional Water Reclamation bonds, Series 2014.
The upgrade and new rating assignment affects $3.6 million in outstanding parity contract revenue debt. Proceeds from the current offering will fund the acquisition, construction, and extension of the Northeast Regional Water Reclamation System, including the construction of the Doe Branch Water Reclamation Plant.
The upgrade to Baa1 and new rating assignment reflect improved credit quality of the pool participants, a fast growing service area, the system's stable financial position, and active management of the district.
The rating incorporates structural elements of the enhanced pool financing, including participant step-up provisions and a cash-funded debt service reserve fund.
