Moody's Investors Service said it has assigned an A1 rating to the Upper Mohawk Valley Regional Water Finance Authority, N.Y.'s $14.2 million water system revenue bonds, Series 2012.

Concurrently, Moody's has affirmed the A1 rating on the authority's $57.7 million in previously issued outstanding rated parity debt.

The bonds are secured by a first lien on system revenues and proceeds will finance an Advance Metering system ($5.3 million), construction of a new water tank ($2.75 million), and an advance refunding of $6.61 million Series 2003 bonds.

The A1 rating reflects the utility's sound financial performance supported by consistent annual rate increases, its position as the sole provider of water to an economically weak service area, and above average, though manageable, debt levels despite future borrowing plans.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.