Press Release|Public Finance
KBRA Affirms AA+ Rating for the San Mateo-Foster City Public Financing Authority, Estero Municipal Improvement District Wastewater Enterprise 2020 EPA WIFIA Loan
4 Sep 2024 | 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 (WWTP) Upgrade and Expansion Project). The Outlook is Stable.
Key Credit Considerations
The rating was affirmed because of the following key credit considerations:
Credit Positives
- Exceptional liquidity position
- District has consistently enacted rate increases and has historically managed its capital program on a pay-go basis
- Affluent service area with a primarily residential customer base
Credit Challenges
- Future revenue growth may need to be supported by rate increases
- Recently increased debt burden as a result of the WWTP upgrade
Rating Sensitivities
For Upgrade
- Rating upgrade is unlikely given the relatively small size of the customer base
For Downgrade
- While unlikely, reduction in Wastewater Enterprise revenues causing a sustained decline in debt service coverage or liquidity position
To access rating and relevant documents, click here.