Global rating agency Fitch Ratings, Inc. affirmed the following Toho Water Authority’s (Toho) obligations at ‘AAA’.

  • Approximately $173.3 million in outstanding utility system revenue and refunding bonds, series 2011A and 2016; and
  • Approximately $40.1 million Water Infrastructure Finance Innovation Act (WIFIA) loan.

The AAA rating signals the continued financial strength, strong operating performance and stable economic future of Toho as a regional service provider.
Fitch noted that the recent outbreak of the coronavirus (COVID-19) has not shown significant impairment to Toho’s revenue or cost profiles. Toho has positioned the utility system well to handle ongoing growth demands.

Moreover, rates are affordable, leverage is low relative to cash flows, and the utility system has minimal debt issuance plans. Company analysts also noted that Toho’s finances remain strong as evidenced by consistently solid margins and healthy debt service coverage (DSC) over the past several years.

Along with Moody’s and Standard & Poor’s, Fitch is one of the top three credit rating agencies. Dedicated to providing value beyond the rating through independent and prospective credit opinions, Fitch Ratings offers global perspectives shaped by strong local market experience and credit market expertise.