Press Release|Public Finance

KBRA Affirms AAA Rating to the City of San José Financing Authority's (CA) Wastewater Revenue Bonds, Stable Outlook

15 Nov 2023   |   New York


KBRA affirms the long-term rating of AAA for the City of San José Financing Authority's (CA) Series 2022B Wastewater Revenue Bonds. The Outlook is Stable.

Key Credit Considerations

The rating actions reflect the following key credit considerations:

Credit Positives

  • Very affluent, highly educated service area, with a strong employment base in the heart of Silicon Valley.
  • Robust financial performance as evident in strong debt service coverage, ample liquidity, and modest debt burden.
  • Autonomous rate-setting authority, competitive wastewater rates and favorable collections given the inclusion of sewer charges on the Santa Clara County’s property tax bills and supported by the Teeter Plan.
  • Manageable debt burden, with no additional long-term borrowing planned over the five-year planning horizon.

Credit Challenges

  • Continue to effectively manage the wastewater system's large capital plan schedule and costs, with limited new debt requirements through FY 2027.

Rating Sensitivities

For Upgrade

  • Not applicable at this rating level.

For Downgrade

  • Failure to adequately raise sewer rates and/or maintain debt service coverage and liquidity metrics commensurate with the rating.

To access rating and relevant documents, click here.



A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1002699

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