Water bonds

The rating agency confirmed the Texas city's A1 bond ratings, ending a review for potential downgrade spurred by an impending water supply crisis.

The outlook revision to stable from negative follows the city's adoption of a fiscal 2027 budget with structural changes that greatly reduced a shortfall.

The spending plan includes revenue-raising measures involving the bond-issuing combined utility system that have sparked concerns by the city's controller.

While the city projects a water emergency, capital costs in the state's latest water plan skyrocket and demand exceeds capacity in a state financing program.

A convention center, a wastewater treatment plant expansion, and a light rail system are among projects in the city that include bond financing.

Water supply woes continue to weigh on the Texas city's bond ratings, which have been hit with multi-notch downgrades and negative outlooks.

Issuers are watching Washington D.C. gearing up for a water bill reauthorization, along with decisions on state revolving funds, appropriation levels and the future of WIFIA.

The Texas city's projected Level 1 emergency — indicating water supply is 180 days from not meeting demand — was moved to December from September.

The Texas city, which has been hit with rating downgrades due to a looming water supply crisis, plans to sell up to $728 million of bonds.

The mayor's plan to balance the fiscal 2027 budget relies heavily on proposed revenue-raising moves involving the combined utility system enterprise fund.

The Trump administration also proposed deep cuts to the state revolving funds in its 2026 budget, which Congress rejected.

The bond sale follows an upgrade by S&P Global Ratings but comes while the city is in the midst of an extreme drought.

The District of Columbia Water and Sewer Authority is applying for a reimbursement from the federal government for repair costs to a broken water line that flooded the Potomac River with raw sewage.

The drought-stricken Texas city's utility system rating was cut two notches to A, marking a continued downward trend in its credit quality.

The Texas city's latest projection for the onset of a Level 1 emergency comes as water woes spurred rating downgrades and negative outlooks since last fall.

Agreements with water districts in the county next door are part of changes to the business plan that include plans to pay off bond debt early.

The rating agency's previous review of the Texas city resulted in downgrades in December over increased credit risk due to water supply woes.

Chicago will issue $875 million of second lien water revenue bonds in a deal with a possible tender component, Acting CFO Steven Mahr said.

The rating agency cited the prospect of lowered debt service coverage ratios in the next three years.

The Texas city is facing a potential level 1 emergency, indicating the water system is 180 days from supply not meeting demand.