Updated July 31, 2023
Roseville's water utility's upgrade from AA to AA+ by Standard & Poor's (S&P) is significant, bringing many benefits to the utility and the local community.
S&P attributed the upgrade to several factors, including low debt levels, a robust cash position, diversified water supplies, effective fiscal management, and a long-standing experienced management team.
The water utility manages water resources for a growing community with a multi-million-dollar operating budget. Utility staff ensures the community receives highly treated and reliable water through a vast infrastructure network of pipes, tanks, wells, and treatment plants. To maintain and expand these assets, significant investments are required.
With the improved AA+ rating, the utility gains increased financial stability, lower future borrowing costs, and better borrowing capabilities. This positioning also sets the stage for even higher ratings in the future. These factors combined pave the way for financing infrastructure projects, maintenance, and expansions at a reduced cost.
“The higher rating strengthens the utility's position in the market, leading to enhanced financial stability, reduced borrowing expenses, and increased investor confidence,” said Richard Plecker, Environmental Utilities Director. “The commitment to responsible financial management ensures that we can effectively meet the community's evolving needs as Roseville continues to prosper.”
This enhanced rating translates into substantial savings in the long term, enabling the utility to use resources more efficiently to benefit the community.