Standard and Poor’s, one of three principal credit rating agencies, upgraded the District of Columbia Water and Sewer Authority (DC WASA) credit rating from AA- to AA for senior lien revenue bonds and from A+ to AA- on subordinate lien revenue bonds. The other two agencies, Moody’s Investors Service and Fitch Ratings, reaffirmed their ratings "Aa3 /AA-," for senior lien revenue bonds and “A1/A+” for subordinate lien revenue bonds, respectively.

In the process of restructuring its variable interest rate bonds to take advantage of lower rates in the current market, DC WASA was reviewed by all three of its rating agencies. All three rated DC WASA with a “Stable Outlook”.

The S&P rating upgrade was supported by strong liquidity levels, a diverse service area, a track record of sound financial operations and long-range financial planning that includes the future costs of new environmental regulatory requirements. With the upgrade and affirmations, DC WASA remains within an elite group of utilities with ratings in the double-A category, the second highest category available to state and local municipal bond issuers.

"Our customers benefit from such positive ratings—when we pay lower interest rates on bonds, and since DC WASA’s retail rates are based on the cost of doing business—DC WASA won’t have to recover as much through rate increases," DC WASA General Manager Jerry N. Johnson said. “In addition, this is an independent and unsolicited recognition that our Board and management team have demonstrated sound financial management. S&P has taken notice of our continued efforts to improve operations and our policies to meet expenses while building reserves.”

DC WASA is an independent Authority of the District of Columbia government and serves more than 580,000 residents in the District by delivering drinking water and collecting and treating wastewater. WASA also serves approximately 1.6 million people in the surrounding counties of Montgomery and Prince George’s in Maryland and Fairfax and Loudoun in Virginia with wastewater treatment services at the Blue Plains Advanced Wastewater Treatment Plant.
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