Printer Friendly

BOSTON WATER AND SEWER COMMISSION BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, March 8 /PRNewswire/ -- Boston Water and Sewer commission's $101 million General Revenue Bonds, 1993 Series A (Senior Series) are rated A+' by Fitch.
 The A+' rating on the commission's outstanding senior and subordinate lien bonds is affirmed. The credit trend is stable. The 1993 Series A bonds are being issued March 8, 1993, by negotiation through a syndicate led by Merrill Lynch & Co. Interest will be payable May 1 and Nov. 1, commencing Nov. 1, 1993. The bonds will be subject to optional and mandatory redemption as determined. The 1993 Series A bonds will refund all of the $16.1 million outstanding 1984 Series A Bonds (subordinated series) and portions of the 1989 Series A Bonds (senior series--$38.0 million) and 1991 Series A Bonds (senior series--$34.0 million).
 A sizable and diversified customer base which accommodates a good balance between residential, tax-exempt institutional, commercial, and industrial accounts insulates the commission from the current downturn in the local economy and increasing charges by the Massachusetts Water Resources Authority (MWRA) for water supply and waste treatment. The commission's physical plant consists primarily of water distribution and sewer collection and transportation facilities and is considered to be in good condition.
 Water system operations have improved significantly through aggressive leak detection, repair, and conservation programs and should continue to benefit from an ongoing systematic renewal and replacement program. The sewer system has been substantially rehabilitated and is in compliance with environmental regulations except for those combined sewer overflow discharge-related requirements for which the MWRA has accepted legal responsibility.
 Financial performance has been strong and future capital requirements are modest. In recent years, senior lien debt service coverage has been consistently above 3.00 times(x) on an accrual basis. Unaudited results for the year ending Dec. 30, 1992, produced senior lien coverage of 3.76x, well above the previously projected 2.89x. Coverage of total debt was 2.20x as compared to the 1.76x projected. Coverage is expected to narrow somewhat over the next five years, reflecting MWRA's large capital program but should still remain very healthy. Pressure on the commission's rates could be somewhat ameliorated by MWRA's deferral of certain capital program components into the next decade and possible commonwealth financial assistance. Additionally, the commission has a significant rate stabilization fund. The commission's inclining block rate structure, recent implementation of monthly billing, and the current refunding will also enhance financial ratios. Commission system bond legal provisions are sound and supported by several reserve accounts.
 -0- 3/8/93
 /CONTACT: Rebecca Bachman, 212-908-0516 or Alan Spen, 212-908-0594, both of Fitch/


CO: Boston Water and Sewer Commission ST: Massachusetts IN: UTI SU: RTG

WB -- NY058 -- 4029 03/08/93 12:44 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 8, 1993
Words:453
Previous Article:ALLEGHENY GENERATING CO. $50 MILLION 5.75 PERCENT NOTES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:CHECKPOINT SYSTEMS, INC. CHALLENGES NARM'S SOURCE TAGGING RECOMMENDATION AS SEVERAL KEY ISSUES REMAIN UNRESOLVED
Topics:


Related Articles
LOS ANGELES $200 MILLION WASTEWATER REVENUES RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
GROTON, CONN. $5.0 MILLION GENERAL OBLIGATION BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
PORTAGE LAKE AUTHORITY (MICHIGAN) $2.8 MILLION BONDS RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
AUSTIN, TEXAS COMBINED UTILITY SYSTEMS BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
LOS ANGELES WASTEWATER REVENUE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
AUSTIN (TX) COMBINED UTILITY SYSTEM REVENUE REFUNDING BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
BOSTON WATER & SEWER COMMISSION'S REVENUE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
WASHINGTON CO. (ORE.) UNIFIED SEWERAGE AGENCY RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
BOSTON WATER & SEWER COMMISSION $40 MILLION BONDS RATED 'AA/F-1+' BY FITCH -- FITCH FINANCIAL WIRE --
Killeen, Texas $8.86 Million Water & Sewer System Revenue Bonds Rated 'A+' By Fitch - Fitch Financial Wire -

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters