KBRA Affirms AA+ Rating for the San Mateo-Foster City Public Financing Authority, Estero Municipal Improvement District Wastewater Enterprise 2020 EPA WIFIA Loan
8 Sep 2023 | New York
KBRA affirms the long-term rating of AA+ for the San Mateo-Foster City Public Financing Authority, Estero Municipal Improvement District (the District) Wastewater Enterprise 2020 EPA WIFIA Loan (San Mateo Wastewater Treatment Plant Upgrade and Expansion Project). The Outlook is Stable.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
- Exceptional liquidity position with DCOH of 2,443.
- Very wealthy service area with primarily residential customer base
- The District has consistently enacted rate increases annually since FY 2015 and historically managed its capital program on a pay-go basis.
- Future revenue growth may need to be supported by rate increases.
- Somewhat elevated debt load
- Favorable progress in WWTP project performance with a stronger than projected DSC.
- A reduction in Wastewater Enterprise revenues causing a sustained decline in DSC or liquidity position without rate management
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