Brevard County, FL Water And Sewer Revenue Bond Rating Raised To 'AA' From 'AA-' On Very Strong Finances

DES MOINES (S&P Global Ratings) May 24, 2019--S&P Global Ratings raised its long-term rating to 'AA' from 'AA-' on Brevard County, Fla.'s outstanding water and sewer revenue bonds. The outlook is stable. The rating reflects our view of the county's very strong enterprise and financial risk profiles.
"The raised rating reflects our view of the system's very strong financial metrics, in particular the growth and stability of their unrestricted cash," said S&P Global Ratings credit analyst John Schulz.
This rating change affects roughly $23.6 million in revenue debt outstanding.
The enterprise risk profile reflects our view of the system's:
  • Service area with only adequate income indicators with an unemployment rate that is higher than both the state and nation;
  • Sufficient system capacity to meet customer demand;
  • Moderately affordable rates based on the average residential water and sewer bill, with average poverty rates; and
  • Operational management assessment (OMA) of good.
The financial risk profile reflects our view of the system's:
  • Extremely strong all-in debt service coverage (DSC), that is projected to remain extremely strong, despite laying in state revolving debt (SRF);
  • Consistently very strong liquidity that we anticipate will be maintained;
  • Substantially sized capital improvement program (CIP) funded with cash and debt; and
  • Financial management assessment (FMA) of good.
Brevard County, with a population estimate of 575,000 encompasses 1,577 square miles along the Atlantic Ocean near the middle of Florida. Titusville, about 40 miles east of Orlando, is the county seat.
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