Moody’s Investors Service (Moody’s) has upgraded its rating on James City Service Authority’s (JCSA) $23 million Water and Sewer System Revenue Bonds, Series 2016 to Aa1. Moody’s rating for the system's $24 million of outstanding parity revenue bonds has also been upgraded to Aa1.
According to Moody’s, “the upgrade to Aa1 reflects the JCSA’s continued improvement in coverage ratios, ample liquidity and a stable service area poised for future growth. The rating further factors in strong service area demographics and manageable system leverage.”
“The bond rating upgrade from Moody's confirms the sound fiscal management policies and practices in place at the JCSA,” says Kevin Onizuk, Chair of the JCSA Board of Directors. Onizuk continues, “This second rating upgrade will assure investors of our financial strength when we move forward with the restructuring of our debts saving millions for JCSA customers and JCC citizens. My thanks to the entire JCSA team for their commitment to responsibility, efficiency, and strong management principles.”
Favorable bond ratings can result in the Authority’s ability to refinance or issue general obligation bonds at a lower interest rate, saving money on interest paid and the rate of debt pay-down.
For more information, visit the Moody’s Investors Service website.
Media Contact: Sue Mellen, Financial and Management Services Director