Press Release|Public Finance
KBRA Assigns A- Rating to City of Columbia, TN Long Term Water Supply Program Project Bonds (WIFIA ID 19133TN)
12 Jun 2026 | New York
KBRA assigns a long-term rating of A- with a Stable Outlook to the City of Columbia, TN Long Term Water Supply Program Project Bonds (WIFIA ID 19133TN).
Key Credit Considerations
The rating was assigned because of the following key credit considerations:
Credit Positives
- Quickly growing service area population with favorable socioeconomic characteristics.
- Favorable operating history and very low existing leverage.
- Necessary rate adjustments through 2030 are already adopted.
Credit Negatives
- Borrowing for the Long Term Water Supply Project will increase leverage to an exceptionally high level.
- Need to substantially increase rates through 2030 to support escalating debt service requirements.
- Though part of the rapidly growing Nashville, TN metropolitan area, the service area employment base is somewhat reliant on a single General Motors manufacturing plant. Loss or diminishment of this employer would weigh significantly on the underlying resource base.
Rating Sensitivities
For Upgrade
- Successful implementation of adopted rate adjustments through 2030 accompanied by completion of the LTWSP on time and within budget and gradual moderation of the Water System’s debt burden thereafter.
For Downgrade
- Inability to manage the complexities and associated cost of the large multi-year capital improvement program.
- Failure to implement already approved rate increases each year through 2030 resulting in unplanned deterioration in liquidity and debt service coverage.
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