Sewerage and Water Board of New Orleans, LA – Sewerage Service Revenue Surveillance Report
Rating Summary
The revision of the Outlook to Negative for the Sewerage and Water Board of New Orleans’ (“SWBNO’s” or the “Board’s”) sewer system reflects concern that recent governance changes enacted by the State which shift additional oversight responsibilities to the City Council underscore the extent of longstanding broader operational deficiencies that may take time to address, and which in combination with ongoing billing issues, growing accounts receivable in the last two years, and a pause in rate adjustments since 2020 may impede the Board’s ability to implement timely and necessary rate adjustments as debt service requirements and operating costs rise over the next several years.
The rating continues to reflect the sewer system’s role as sole provider of an essential service to the City of New Orleans (the “City”), a large and diverse customer base, local rate-setting authority, historically ample liquidity and debt service coverage, and strong legal provisions supporting…
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