The Metropolitan Government of Nashville and Davidson County, TN – Water and Sewer Surveillance Report
Rating Summary
The long-term rating reflects the Department of Water and Sewerage Services’s (the “System” or “Metro Water Services”) strong financial performance, as exhibited by ample debt service coverage and moderate leverage, competitive retail rates, and the provision of essential services to an economically solid and growing service area within the Nashville metropolitan statistical area (MSA). Credit challenges center on the System’s substantial five-year capital improvement plan ($4.1 billion) which includes considerable debt funding that may pressure leverage, and the Systems’ ongoing ability to maintain rates adequate to sustain projected financial performance through the capital program.
The Water and Sewer Senior Lien Revenue Bonds (the “Bonds”) are limited obligations of the Metropolitan Government of Nashville and Davidson County, TN (“Metro Government”), payable and secured by a pledge of and lien on the water and sewer revenues of the System, after payment of operation…
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