Standard and Poor’s Gives LWC Highest Bond Rating
Wednesday December 2, 2009
Louisville Water Company (LWC) has received an AAA rating from Standard & Poor’s (S&P), one of the nation’s leading providers of credit ratings. S&P upgraded LWC from an AA+ rating to the AAA mark, citing the company’s strong financial operations, its large and diverse service area and its comprehensive capital planning. According to S&P, the outstanding rating places LWC in the top 8% of the 900 water and sewer utilities it rates.
In addition to the S&P rating, Moody’s Investor Services has given LWC a rating of Aa1, its second highest rating.
The ratings arrive days before LWC plans to issue $202 million in bonds on December 8. The bond sale includes $126 million in “Build America Bonds” due in 2029 and refinancing $76.5 million of existing 2000 and 2001 Series bonds. The proceeds will fund LWC’s capital program through 2012 which includes:
Renovating the Crescent Hill Filtration Plant, the state’s largest water treatment plant and the plant that serves 70% of LWC’s customer base. The upgrades to the 100-year-old facility will allow LWC to meet EPA’s Enhanced Surface Water Treatment Rule in 2012.
Transmission main projects which include replacing and rehabilitating some of the existing 4,000 miles of water main and installing new transmission mains along Interstates 64 and 65.
Completing a riverbank filtration project that will provide a cleaner source of water, pulling up to 70 million gallons a day from the aquifer.
“LWC is proud to receive its highest rating ever”, said Greg Heitzman, President and CEO. “This AAA rating confirms our sound, financial performance and our commitment to provide a safe, reliable, high-quality supply of drinking water to our customers.”
LWC supplies drinking water to nearly one million people in Louisville Metro, Bullitt, Nelson, Oldham, Shelby and Spencer Counties. The company produces an average of 130 million gallons of drinking water each day and is considered a national leader for outstanding quality, taste and value.