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KBRA Affirms AA Rating for Narragansett Bay Commission (RI) Wastewater System WIFIA Loans; Stable Outlook

18 Sep 2026   |   New York

Contacts

KBRA affirms the long-term rating of AA with a Stable Outlook for the Narragansett Bay Commission’s ("NBC's") 2020 Series B Combined Sewer Overflow ("CSO") Phase III Facilities Water Infrastructure Finance and Innovation Act loan ("WIFIA") and the 2020 Series C Bucklin Point Resiliency Improvements WIFIA loan.

Key Credit Considerations

The rating is affirmed because of the following considerations:

Credit Positives

  • Favorable history of rate setting, with the ability to use an expedited regulatory rate review process to maintain adequate debt service coverage.
  • Largely residential and modestly growing customer base, with competitive wastewater rates.
  • Comprehensive long-term financial and capital plan which has been maintained close to budget and updated on an annual basis.

Credit Challenges

  • Rate increases are subject to regulatory review by the State’s Rhode Island Public Utilities Commission ("RIPUC"). Positively, NBC has a history of constructive rate reviews by the RIPUC.
  • Higher complexity and implementation risk related to the CSO Phase III projects.
  • Leverage, as measured by total debt to net plant, and debt service requirements are rising as NBC funds the large capital program.

Rating Sensitivities

For Upgrade

  • Under budget completion of NBC’s large capex, with lower debt requirements and financial coverage materially above the projected minimally required debt service coverage.

For Downgrade

  • Under budget completion of NBC’s large capex, with lower debt requirements and financial coverage materially above the projected minimally required debt service coverage.

To access ratings and relevant documents, click here.

Methodology

Disclosures

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 www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1017115