In spite of the financial crisis and economic recession that are challenging many state and municipal agencies, the District of Columbia Water and Sewer Authority (DC WASA) received good news from the three principal credit rating agencies. Fitch Ratings has upgraded DC WASA’s bond rating outlook from Stable to Positive. Fitch Ratings affirmed the AA- rating on the Authority’s senior lien debt. Additionally, Moody’s Investors Service has affirmed the Authority’s current Aa3 bond rating and Standard and Poor’s also affirmed the current AA rating on the Authority’s senior-lien debt.

Implementing and financing DC WASA’s 10-year capital improvement program which is required to maintain and improve water and wastewater infrastructure systems and to meet new environmental regulatory requirements is projected to cost $3.2 billion. All three rating agencies noted DC WASA’s high liquidity levels, diverse customer base, track record of implementing rate increases as needed, and long-range financial planning. Each element is seen as a major positive, and critically important in maintaining DC WASA’s well-recognized strength in financial management.

Fitch Ratings based its decision to move DC WASA’s outlook from Stable to Positive primarily due to “WASA’s continued progress in addressing its costly capital improvement plan (CIP) while maintaining a favorable financial position. Fitch believes the successful reduction over the last several years of delinquent accounts and water loss, as well as the Authority’s demonstrated ability to outperform financial projections are also positive indicators.”

“Given the severe downturn in today’s economy, the affirmation of our existing double-A status by these major credit agencies is quite an accomplishment,” said DC WASA Board Chairman William M. Walker. “The better our credit rating, the more favorable interest rates we can expect. Since our rates are based on the cost of doing business, our customers benefit over time.” General Manager Jerry N. Johnson added, “This comes at a time when the Authority is going to the bond market with a planned $300 million bond issuance to finance needed infrastructure improvements and projects required under federal mandates for water pollution control.”

As a result of the favorable outlook and ratings affirmations, the Authority 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.

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. DC 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.