S&P Global Ratings a leading data, research, credit ratings agency has assigned Coachella Valley Water District (CVWD) with a AA+ rating on the District’s $35.4 million Drinking Water and Sewer System Revenue Notes.
The 2022 Notes are being issued in early February to provide interim funding for certain capital improvements to the District’s water systems. A Note is a debt security obligating repayment of a loan, at a predetermined interest rate, within a defined period. Notes are similar to bonds but typically have an earlier maturity date.
“This AA+ rating is the first formal credit rating on the District’s Domestic Water Fund,” said Geoffrey Kiehl, Director of Finance for CVWD. “This rating is a reflection of CVWD’s financial stability and leadership.”
According to the S&P Global Rating Summary, “the rating reflects our opinion of the district's enterprise domestic drinking water system's general creditworthiness and a combination of its very strong enterprise risk profile and extremely strong financial risk profile. The rating also reflects, in our opinion, good conservative management practices and policies.”
The District expects to apply a portion of the proceeds of the 2022 Notes to provide interim funding for the capital improvement projects listed here:
- Construction of a 1 million-gallon storage reservoir in the North Shore area.
- Replacement of approximately 13,222 lineal feet of 8-inch and 12-inch diameter pipes and other facilities within Dale Kiler Road in Mecca and nearby streets.
- Replacement of approximately 14,238 feet of pipe within the unincorporated community of North Shore in Riverside County.
- Rehabilitation and upgrading of several booster stations located throughout CVWD’s Drinking Water System in the eastern Coachella Valley.
Coachella Valley Water District is a public agency governed by a five-member board of directors. The district provides domestic and irrigation water, agricultural drainage, wastewater treatment and reclamation services, regional storm water protection, groundwater management and water conservation. It serves approximately 110,000 residential and business customers across 1,000 square miles, located primarily in Riverside County, but also in portions of Imperial and San Diego counties.