Standing upgraded by largest national credit rating agency
Rowland Heights, CA (January 12, 2024) – S&P Global Ratings (S&P) has elevated Rowland Water District’s (RWD) long-term credit rating from AA- to AA. The rating is among the highest possible given by S&P for District’s of similar size, underscoring RWD’s fiscal accountability to its customers and stakeholders.
S&P specifically highlights RWD’s stable fiscal outlook. The District has strong debt coverage and liquidity levels, including a low debt burden at 32.8 percent debt-to-capitalization. S&P expects this figure to strengthen with the District’s fully cash-funded five-year capital improvement plan.
“Our goal is to be a steady resource for our community, and the S&P credit rating underlines our efforts,” Myra Malner, Director of Finance. “Just as we are stewards of our regional water supply, we handle our funding and financial position with the same responsibility.”
S&P considered RWD’s rate structure, which includes a drought surcharge and a 45 percent fixed component. This balanced structure offsets the high cost of imported water, allowing RWD to recoup its operating and maintenance fees and ensure financial stability during dry years. Customers benefit from this rate stabilization and flexibility.
RWD’s proactive and comprehensive management policies impacted their AA credit rating. These policies help the District provide reliable services to its 55,000 customers while continuing to carefully manage the funds the public entrusts to them.
S&P predicts that RWD’s financial performance will remain strong thanks to its approved rate plan through 2026 and the lack of additional debt plans.
To learn more, visit rwd.org.