Narragansett Bay Commission, RI – Wastewater Revenue Surveillance Report

Rating Summary

The long-term ratings reflect the Narragansett Bay Commission’s (“NBC’s” or the “Commission’s”) sound financial performance supported by timely and adequate sewer rate adjustments, a diverse customer base with competitive sewer rates, and solid security provisions supporting the WIFIA loans. For the past five years, debt service coverage has been consistently solid and in excess of the 1.25x rate covenant.

Counterbalancing the aforementioned strengths is the regulatory oversight of NBC’s rate setting by the Rhode Island Public Utility Commission (“RIPUC”), and the size and scope of the Commission’s largely debt funded capital program through FY 2032, which will pressure leverage and annual debt service requirements over the capex cycle. KBRA notes NBC has historically received constructive RIPUC rate treatment, particularly given the critical and mandated (state and federal) nature of the majority of its capex. As of June 30th, 2026, NBC had approximately $1.3…