Honolulu received a AA and a stable outlook Wednesday from Fitch Ratings for $232 million of wastewater system revenue bonds it plans to market in a negotiated sale on Oct. 12 and 13.

The timing depends on market conditions.

The city plans to sell the senior-lien bonds in two tranches of $164.9 million and $67.1 million.

The proceeds of the $164.9 million series will fund general capital needs, while the second series is a refunding for cost savings.

Fitch also affirmed $1 billion of outstanding senior-lien revenue bonds at AA and $435.4 million of outstanding junior-lien revenue bonds at AA-minus.

Honolulu provides wastewater service to 74% of the island of Oahu’s population and analysts said the system has seen limited impact on its revenue or delinquency rate from the economic recession.

The system has instituted substantial rate increases this year, but they appear to have broad political and community support.

The aging wastewater system, however, needs substantial improvements to meet U.S. Environmental Protection Agency standards, so continued revenue flexibility is considered a key factor in fiscal stability, analysts said.

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