Fitch Ratings (Fitch), one of the big three international ratings agencies, upgraded its
rating to ‘AAA’ for the Vallecitos Water District. ‘AAA’ is the highest possible rating
available from Fitch. The ‘AAA’ rating benefits the District by allowing Vallecitos to issue
debt at a lower interest rate resulting in lower financing costs for necessary water
reliability and infrastructure projects.
Each year, Fitch reviews credit rating scores to determine creditworthiness and financial
standings for companies and countries around the world. AAA-rated bonds are
considered to have the highest degree of creditworthiness and a strong financial profile
with exceptionally low risk for default. Key components of the rating that Fitch assesses
include revenue defensibility or the ability to diversify income; operating risk including
foreseeable expenses and the need to rely on loans; and financial profile or the liquidity
and flexibility of the budget. Fitch’s rating is made up of several key drivers. The AAA
rating for Vallecitos Water District indicates a very strong financial profile, exceptionally
low leverage, and remarkably low risk for investors.
“The announcement of Vallecitos Water District’s upgrade to a ‘AAA’ rating from Fitch is
a substantial honor,” said Westley Owen, Chief Financial Officer for Vallecitos Water
District. “Our dedication to financial stability, transparency, and strong reserves have led
to this achievement.”
Further details and information on the Fitch Rating can be found here:
