NORFOLK, VA – On Oct. 11, 2023, Standard and Poor’s Global Ratings (S&P) and Fitch Ratings (Fitch) affirmed the City of Norfolk’s Water Utility System’s (System) existing strong credit ratings of AA+ and AA+, respectively. Additionally, Fitch affirmed the positive rating outlook, signaling the potential for a rating upgrade over the near term, and illustrates Fitch’s expectation that the healthy financial profile of the City’s System will be maintained.
The strong ratings from both rating agencies reflect the City’s exceptional financial profile, and healthy reserve and debt service coverage levels, with strong supportive liquidity. The ratings reflect the strength of the System’s capacity to meet the future needs of its users and its role as an essential regional water provider in Hampton Roads, with long-term service contracts.
These credit ratings assist the System in achieving low cost of funds to finance key capital projects. Perhaps more importantly, strong ratings illustrate the System’s financial strength.
The rating affirmations come prior to the sale of up to approximately $70 million of Water Revenue Bonds scheduled for Oct. 24 to fund previously approved Water Utility capital projects such as upgrades to the System’s water treatment plants, improvements to water pipeline infrastructure, improvement to the resource and delivery systems, and installation of water storage tanks.