MADISON WATERWORKS SYSTEM REVENUE BONDS UPGRADED TO 'Aa1' BY MOODY'S FROM 'Aa'
MADISON WATERWORKS SYSTEM REVENUE BONDS UPGRADED TO 'Aa1' BY MOODY'S FROM 'Aa' NEW YORK, Oct. 12 /PRNewswire/ -- Effective today, Moody's Investors Service assigned a 'Aa1' rating to a $5.45 million of Madison, Wis., waterworks system revenue bonds expected to be sold at public sale on Oct. 13. Moody's stated that, "Ongoing expansion of the customer base, favorable managerial practices, sound financial performance, a modern physical plant and satisfactory coverage of maximum annual debt service from current receipts results in the rating revision for this waterworks system serving the city of Madison and several suburbs. The economic strength and diversity of the Madison Metropolitan area contributes to an expanding customer base, and modestly increasing sales which result in sound financial operations. Primary customers include the University of Wisconsin, state, county and city governments and several large industries. Rates are subject to state Public Service Commission approval, however modest rate adjustments have occurred in a bi-annual basis offsetting concerns arising from outside review of financial operations. The inclusion of mandatory payments in lieu of taxes within the rate base insures continued above average coverage for revenue bonds issued by the utility. Capital investment in the utility occurs on an ongoing basis with limited future borrowing anticipated for system expansion and modernization resulting in manageable levels of debt which are rapidly retired. This rating revision affects $17,535,000 of revenue supported debt. -0- 10/12/92 /CONTACT: James Doyle, assistant vice president of Moody's, 212-553-4974/ CO: ST: Wisconsin IN: SU: RTG
PS-TM -- NY063 -- 8989 10/12/92 17:21 EDT
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|Date:||Oct 12, 1992|
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