Standard & Poor's Ratings Services said it has raised its rating on Oklahoma Water Resources Board's state loan program revenue bonds to AAA from AA-plus.
The outlook is stable.
"The upgrade reflects the board's access to the newly created Water Infrastructure Credit Enhancement Reserve Fund," said Standard & Poor's credit analyst James Breeding.
The board now has the ability to issue bonds supported by a state general obligation pledge in an amount up to $300 million. This additional support effectively lowers the financial risk score assigned to the state loan program and allows for an adjustment of the rating to AAA.
The ability to issue state GO bonds is contingent on the state retaining strong market access. With the high current rating on Oklahoma, the rating agency does not believe this is a concern; however, should the state's access to the bond market become less certain, the enhancement provided by access to the Water Infrastructure Credit Enhancement Reserve Fund could be diminished.
