The Santa Clarita Valley Water Agency (SCV Water) received an increased credit rating by Standard & Poor (S&P) after a comprehensive review of the agency’s finances.

The credit rating increase acknowledges a stable long-term financial outlook for the water agency, according to officials.

S&P credited SCV Water’s “sophisticated” management, diverse water portfolio, and the ability to maintain strong debt service coverage and operating services, as reasons to certify the agency at a “AA+” level.

“Achieving a AA+ credit rating across the board recognizes SCV Water’s strong financial footing and ability to pay debt,” said Rochelle Patterson, Chief Financial and Administrative Officer.

S&P affirmed the agency’s level for numerous bonds and senior-lien certificates of participation (COPs), including:

• Raised the long-term rating to AA+ from AA on the Upper Santa Clara Valley Joint Power Authority’s (USCVJPA) subordinate-lien revenue bonds, which are issued for SCV Water
• Assigned a AA+ long-term rating to the USCVJPA’s anticipated $63.7 million series 2023 subordinate-lien revenue bonds
• Affirmed a AA+ rating on SCV Water’s existing senior-lien COPs, as well as parity subordinate-lien COPs

“These ratings will enable the Agency to secure lower interest rates when financing capital improvement projects, which is a benefit to ratepayers as well,” added Patterson.

Credit ratings are assigned by S&P to companies through the use of letter grades from AAA to D. The risk-assessment informs investors how likely the organization is to repay its debt. A rating of AA+ indicates that the organization is financially stable and has a very low chance of default.

About SCV Water:

SCV Water is a full-service regional water agency located in the Santa Clarita Valley. SCV Water provides water service to approximately 75,000 business and residential customers. It was formed on January 1, 2018, when local water suppliers combined into one integrated, regional water provider. More information can be found here.

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