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Fitch Ratings affirms obligations of Sonoma County Water Agency at 'AA+'.

San Francisco: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed following obligations of the Sonoma County Water Agency, CA (the agency) at 'AA+': --$10.4 million water revenue refunding bonds, 2012 series A; and --$23.2 million water revenue bonds, 2015 series A and 2015 series A-T (federally taxable).

The bonds are secured by net revenues of the agency's water transmission system. Net revenues exclude property taxes, various capital cost payments from wholesale customers, Russian River Project funds and Marin Municipal Water District payments for firm water supply. The agency's board sets rates on an annual basis and is not subject to the Proposition 218 regulatory process. The governing contract unconditionally obligates contractors to pay agency costs regardless of water deliveries and provides that a failure to pay by one or more customers would have to be covered by the others through the following year's rate-setting process.

The agency makes wholesale water sales in accordance with a long-term agreement for water delivery (through 2040 or until all bonds are repaid). The eight prime contractors party to the agreement account for around 80% of water sales across a large, diverse and economically healthy service area with limited alternative supply options.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Jul 29, 2018
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