Municipal Authority of Aliquippa will use the series 2017 bond proceeds to refund its series 1998 and 2013 bonds, its Pennvest Note, and the ESB Bank Loan.


The authority will use the series 2017 bond proceeds to refund its series 1998 
and 2013 bonds, its Pennvest Note, and the ESB Bank Loan. In addition, the 
authority will use about $1 million of new money for various capital 
improvements to the water and wastewater system.

The enterprise risk profile reflects our view of the authority's:

  • Customer base located in the Pittsburgh metropolitan statistical area, about 29 miles northwest of Pittsburgh on the west side of the Ohio River;
  • Good market position based on affordable combined service rates in the context of the service area's adequate income levels and low, 11.7% county poverty rate;
  • Very low industry risk as a monopolistic service provider of an essential public utility; and
  • Standard operational management assessment, which reflects the system's adequate water supply and wastewater treatment capacity to meet current demand and modest growth, in addition to management's continual review of rates and implementation of rate increases.
The financial risk profile reflects our view of the authority's:

  • Strong all-in coverage that we expect to continue based on management-provided projections and expected rate increases;
  • Good liquidity at about 125 days of operating expenses in fiscal 2016, which we expect to be maintained;
  • Manageable leverage based on a pro forma debt-to-capitalization ratio of about 49%; and
  • Good financial management assessment, which reflects comprehensive forward-looking financial practices despite the lack of formalized comprehensive policies.