Bond rating upgraded to second-highest possible ranking
Cleveland – On Friday, Oct. 29, 2010, Standard & Poor’s upgraded the Northeast Ohio Regional Sewer District’s bond rating from AA to AA+. In addition to the S&P upgrade, Moody’s reaffirmed the Sewer District’s prior rating of Aa1.
This week, the Sewer District will sell $338.29 million in federally-taxable series 2010 Build America Bonds, set to mature Nov. 15, 2040. Standard & Poor’s also assigned an AA+ rating to these wastewater improvement revenue bonds.
“This is quite an achievement in the current economic conditions,” said Julius Ciaccia, Executive Director, NEORSD. “Our Board of Trustees’ consistent support of our programs over the years, including critical rate increases, is a major factor in S&P’s decision to award the Sewer District such a favorable rating.”
Standard & Poor’s rating of AA+ indicates that the Sewer District has a very strong capacity to meet future financial commitments and the Standard & Poor’s Rating Report reflected a stable outlook. The bond rating upgrade also reflected “the district’s maintenance of financial metrics, which we consider very strong.”
Bond ratings assess risk for investors and can affect the interest rate paid by Sewer District’s customers for the organization’s long-term debt. AA+ is the second-highest of 22 long-term bond ratings—ranging from AAA to D—offered by Standard & Poor’s.
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Jennifer Elting, Public Information Specialist, Northeast Ohio Regional Sewer District
Jennifer Demmerle, Director of Finance, Northeast Ohio Regional Sewer District