Phoenix Water and Wastewater Bond Rating Upgraded to ‘AAA’

The city of Phoenix’s water and wastewater revenue bond ratings have been upgraded to ‘AAA’ from ‘AA.’

According to Standard and Poor’s Ratings Services, the upgrade reflects Phoenix’s large, diverse and expanding economic base; sufficient water supply; ample treatment capacity; large but reasonable five year capital improvement plan and low combined water and wastewater rates.

“The city of Phoenix continues to raise the bar,” said Mayor Phil Gordon. “Our professional managers are always well ahead of every curve, anticipating future needs and doing whatever is necessary to meet those needs. Plus, our ability to maintain the best bond ratings in the nation, through good times and challenging times, is unparalleled.”

According to Phoenix Water Services Director, David Modeer, “Phoenix water and wastewater customers will benefit from potentially lower future rate increases due to the city’s ability to borrow money at a lower cost to build, maintain and rehabilitate its infrastructure less expensively.”

The upgrade also is based upon Phoenix’s water system’s low cost water supply, revenue raising flexibility and strong historical financial operations. It recognizes the Phoenix Water Services Department’s recent efforts to downsize its Capital Improvement Program during the current slowdown.

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