MOODY'S UPGRADES DU PAGE WATER COMMISSION, ILLINOIS GENERAL OBLIGATION BOND RATING FROM 'Aa' TO 'Aaa'
MOODY'S UPGRADES DU PAGE WATER COMMISSION, ILLINOIS GENERAL OBLIGATION BOND RATING FROM 'Aa' TO 'Aaa' NEW YORK, April 3 /PRNewswire/ -- Effective today, Moody's Investors Service has revised the general obligation bond rating of the Du Page Water Commission from "Aa" to "Aaa." The rating action was taken in conjunction with the sale of approximately $140 million of general obligation refunding bonds, series 1992, expected through negotiation the week of April 6. The commission was formed to construct and operate a water supply system to transport treated Lake Michigan water obtained from the city of Chicago and distribute it to Du Page County municipal water systems. The service traditionally covers more than a 300 square mile area in northeast Illinois, approximately 20 miles west of Chicago. Provision of service began late last year, with full scale operation scheduled for May 1. Underlying the rating revision is the commission's sound management of the construction program, which resulted in project completion on schedule and within budget. The favorable outcome of the construction program, which resulted in project completion on schedule and within budget. The favorable outcome of construction removes a large uncertainty and enhances the already very strong credit factors associated with the project. These factors include the essential nature of the service reflected in the need to replace less reliable ground water sources to accommodate a growing service area population, and the dependability of the Lake Michigan source. Other positive features are a long-term water supply contract with Chicago which limits charges to the lowest rate charged to regular City of Chicago customers, and the sizing of the system for projected 2020 needs. No additional borrowing needs have been identified. The commission's economically strong service territory and growing tax base are additional key elements in the rating decision. While the bonds are secured by the commission's general obligation pledge, the debt service levy has annually been abated from proceeds of a voter- authorized 0.25 percent sales tax. The sales tax currently generates approximately $4 million more than is needed to meet debt service requirements and is not a pledged operating source under the commission's revenue bond ordinance. Excess monies have been accumulated and approximate $41 million, almost one-half of projected fiscal 1993 operations. Amount of general obligation debt outstanding, including current offering and excluding refunded bonds: $156,585,000. -0- 4/3/92 /CONTACT: Paul Devine, 212-553-0012, or Harvey Zachem, 212-553-7731, both of Moody's/ CO: Du Page Water Commission ST: Illinois IN: UTI SU: RTG
SH-TQ -- NY048 -- 4907 04/03/92 14:50 EST
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|Date:||Apr 3, 1992|
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