Standard & Poor’s raised the long-term rating to AA-minus from A on the Union County Utilities Authority’s Series 1998A senior lease revenue bonds and Series 1998 taxable solid-waste landfill revenue bonds.
The rating agency cited the utility’s continued stable and consistent operating and financial performance record.
“The stable outlook reflects our expectation that the system will likely maintain sound operations and continue to attract abundant waste, thereby enabling it to generate sufficient revenues to meet all obligations,” analyst Paula Costa said in a statement.
The authority’s system includes a waste-to-energy plant in Rahway, N.J., that processes 1,540 tons per day. The UCUA owns and operates the plant under a long-term agreement by Covanta Energy Corp.
The plant attracts waste levels that exceed the authority’s guaranteed annual tonnage requirement and aids in maximizing energy revenues.