On Wednesday, November 30, 2016, the Marin Municipal Water District closed a successful $30.2 million revenue bond sale to take advantage of favorable interest rates and refinance revenue bonds issued in 2010. The refinancing created an opportunity to utilize interest rate savings to restructure future debt service payments.
As part of the process leading up to the sale, the District secured a credit upgrade from Standard & Poors, bringing its credit rating from AA to AA+. This upgrade is the result of the District’s improved financial performance, including implementation of a board approved rate restructuring and capital investments in the District’s infrastructure. Fitch affirmed its prior AA rating of the District. Credit scores are an important factor when lenders set loan rates.
“MMWD’s efforts to recognize a fiscally responsible opportunity and work towards receiving an improved credit rating, is a significant benefit to our customers and aligns with our long-range financial goals and the District’s strategic plan initiative of financial stewardship,” said Cynthia Koehler, Board President and Finance Committee Chair.
For a full analysis of the factors used by S&P Global Ratings to arrive at the AA+ rating, refer to their report published on November 10, available at marinwater.org/DocumentCenter/View/4561.
MMWD is Marin County’s largest provider of drinking water, serving a population of 187,500 in a 147-square-mile area of south and central Marin County. The District owns and manages 21,635 acres of watershed land on Mt. Tamalpais and in west Marin. The primary source of water supply is rainfall captured in seven reservoirs, providing 75% of the water consumed each year. The remaining 25 percent is imported annually from the Russian River through an agreement with the Sonoma County Water Agency. MMWD also operates its own recycled water system.
Media Contact: Lon Peterson