Moody’s Upgrades Mount Pleasant Waterworks to Aa1 Credit Rating
November 9, 2015
Moody’s Investors Service has upgraded Mount Pleasant Waterworks (MPW) from Aa2 to Aa1 rating.
The upgrade reflects the strong service area, which is experiencing steady growth, well-managed financial position with ample coverage and liquidity, strong asset management and budget controls, below-average debt ratio, and satisfactory legal provisions.
Moody’s noted that MPW’s overall financial profile has been consistently strong. The implementation of annual rate increases, coupled with efforts to cut costs related to personnel, salaries, and general expenses, has enabled MPW to consistently maintain a positive financial standing. Moody’s indicated that the system’s sizable and economically diverse service area contributes to its financial stability. Moody’s expects the system’s financial operations to remain healthy given strong debt service coverage, expected future rate increases, satisfactory levels of liquidity and the expectation of long-term growth in the region.
“MPW operates and maintains over $1 billion in assets. In order to do so and provide our customers with safe clean water we have to maintain a strong reliable financial position. Our overall financial performance is stable due to our management of expenses and financial planning. We have and will continue to stay focused on what is best for our customers. We continue to identify and implement cost saving ideas as we maintain our current high level of service and implement financial policies that create financial reliability and stability,” stated Clay Duffie, General Manager. He added, “the Commissioners have provided great leadership and worked with staff to develop a successful Cost Recovery Policy, which has played a vital role in MPW maintaining a positive financial record.”