Press Release|Public Finance

KBRA Affirms AA Rating for Narragansett Bay Commission WIFIA Loans; Outlook is Stable

28 Sep 2023   |   New York


KBRA affirms the long-term rating of AA for the Narragansett Bay Commission (NBC) Combined Sewer Overflow Phase III Facilities WIFIA Loan and the Bucklin Point Resiliency Improvements WIFIA Loan. The Outlook is Stable.

Key Credit Considerations

The rating was affirmed because of the following key credit considerations:

Credit Positives

  • Favorable history of rate setting, with the ability to use an expedited rate review process with the state regulator, the Rhode Island Public Utilities Commission (PUC), to maintain adequate debt service coverage.
  • Largely residential and modestly growing customer base, with competitive wastewater rates.
  • Comprehensive long-term financial and capital planning process which is updated on an annual basis.

Credit Challenges

  • Rate increases are subject to regulatory review by the state's PUC. Positively, NBC has a history of constructive rate decisions to date.
  • Long-term debt is rising with the large capital expenditures through 2029; leverage is high relative to net fixed assets.

Rating Sensitivities

For Upgrade

  • Continued timely and within budget completion of NBC's large capex plan while maintaining rate affordability.

For Downgrade

  • A less favorable rate regulatory environment.

To access rating and relevant documents, click here.


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