EMWD Achieves AAA Credit Rating
Perris, CA (November 30, 2021) — Eastern Municipal Water District (EMWD) has achieved a AAA credit rating by Fitch, one of the three major rating agencies, as part of its continued commitment to being strong financial stewards of public funds.
The AAA rating provides direct benefits to customers by helping EMWD secure low interest rates, which provide long-term cost savings to customers when funding infrastructure needed to provide safe and reliable water, wastewater and recycled water services.
Fitch assigned the ratings earlier this month for a variety of obligations totaling $865 million in water and wastewater revenue bonds that were used to construct infrastructure to meet the needs of EMWD’s customers.
The AAA rating applies to the following:
- $23.1 million in refunding revenue bonds, series 2021. The bonds are expected to sell on or around December 7, 2021, and will be used to refund the Western Riverside Water and Wastewater Financing Authority revenue bonds
- $812.9 million in water and wastewater revenue bonds. These were upgraded to AAA from AA+
- $29.1 million in Western Riverside Water and Wastewater Financing Authority revenue bonds, series 2005A and 2009. These were also upgraded to AAA from AA+.
EMWD has previously received a AAA rating from Standard & Poors for its bonds.
EMWD’s financial structure has been cited by rating agencies as a major factor in its high ratings. This includes an allocation based-rate structure — and its recovery of fixed costs through daily service charges instead of volumetric water use – and EMWD’s financial participation charges, which require new developments to pay their fair share to construct or expand infrastructure to meet the needs of those new homes and businesses.
“EMWD is proud of the sound financial management of public funds that has led to our continued high credit ratings,” EMWD Board President Phil Paule said. “We are committed to continually act in the best fiduciary interest of our ratepayers.”
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Eastern Municipal Water District is the water, wastewater and
recycled water service provider to nearly one million people
living and working within a 558-square mile service area in
western Riverside County. It is California’s sixth-largest retail
water agency, and its mission is “To deliver value to our diverse
customers and the communities we serve by providing safe,
reliable, economical and environmentally sustainable water,
wastewater and recycled water services.”
More information can be found at www.emwd.org