Louisville Water Company Receives Top Credit Ratings from Standard & Poor’s and Moody’s
Thursday, July 31, 2014Standard & Poor's Ratings Services (S&P) and Moody’s Investors Service (Moody’s) have assigned the highest credit ratings for Louisville Water’s Board of Water Works 2014A refunding revenue bonds. The Board is the governing body for Louisville Water which serves over 850,000 people in Louisville Metro and surrounding counties. In a report released July 31, S&P notes Louisville Water’s strong financial performance, long-term planning efforts, risk management policies, and controls that help stabilize the company’s operations. In addition to the “AAA” rating assigned to the 2014A bonds, S&P has affirmed its "AAA" long-term and underlying ratings for the Board's revenue debt. Moody’s Ratings Report was also released today, attributing its highest rating of “Aaa” to Louisville Water’s strong management, stable financial metrics, conservative budgeting, and a manageable debt profile with plans for additional borrowing. Moody’s affirmed its “Aaa” rating for the revenue debt, as well. Currently, Louisville Water holds $242 million in bonds to finance the company's capital improvement plan. Proceeds from the bonds funded upgrades to the Crescent Hill Water Treatment Plant, construction of new transmission pipelines along Interstates 64 and 65, and completion of the riverbank filtration project at the B.E. Payne Plant. "We are very proud of the credit ratings assigned by S&P and Moody’s today,” said Amber Halloran, Louisville Water Vice President and Treasurer. “These high ratings allow Louisville Water to borrow at a lower cost for investment in the infrastructure, facilitating its commitment to produce high-quality drinking water at a value to customers.” Both credit rating agencies expect a “stable outlook” for Louisville Water’s financial performance. Report summaries are available at standardandpoors.com and moodys.com.