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DSRSD Achieves AA+ Rating from S&P Global Ratings
Media Contact: Sue Stephenson, 925-875-2295 (office) 925-570-5739 (cell), email@example.com
DUBLIN, CA–Standard & Poor’s Global Ratings raised Dublin San Ramon Services District’s long-term credit rating on its Series 2011 Water Revenue Refunding Bonds two notches, from AA- to AA+. This rating will be assigned to the Series 2017 Water Revenue Refunding Bonds upon the closing of such bond issue.
“It’s uncommon for an agency’s credit rating to jump up two levels,” says Robert Porr, Senior Vice President with Fieldman Rolapp & Associates, at the District’s December 5 board meeting. “In my 31 years in this business, I can only think of two or three other agencies improving their credit ratings at one time by two notches. This AA+ credit rating recognizes the District’s financial strength.”
The Standard & Poor’s report cites the District’s very strong business and financial performance during the past three fiscal years, including sound debt management, reserve policies, and long-term planning that built up liquid and capital reserves, and the Board of Directors’ willingness to adjust rates when necessary. The rating increase also reflects a resurgence of development in the area and the fact that the District can pass through cost increases to customers, especially the cost of water purchased from Zone 7 Water Agency, which is 66 percent of the average residential customer’s water bill (family of four using 26 units of water per month).
The area’s very strong income levels and low unemployment rates also contributed to the District’s improved credit rating. Dublin and San Ramon’s median household income is twice the national income (202 percent), and the area’s effective buying income (disposable income) is 225 percent of the national average. As of August 2017, the unemployment rate in Dublin and San Ramon was about three percent, lower than the state’s 5.4 percent and nation’s 4.5 percent.
In addition, the District’s top ten customers, which make up approximately 16.7 percent of total water sales, are steady customers, and those that carry credit ratings from Standard & Poor’s are highly rated.
The Standard & Poor’s report noted the DSRSD Board of Directors is very stable. The District has enough reserves to finance anticipated capital improvement projects for the next five years without incurring more debt, and the District has adequate reserves to weather difficult times like the 2008 economic downturn and the recent California drought.
Founded in 1953, DSRSD serves 178,000 people, providing potable and recycled water service to Dublin and the Dougherty Valley area of San Ramon, wastewater collection and treatment to Dublin and south San Ramon, and wastewater treatment to Pleasanton (by contract). ). DSRSD also operates the Jeffrey G. Hansen Water Recycling Plant and a backbone recycled water distribution system on behalf of the San Ramon Valley Recycled Water Program. The District office is located at 7051 Dublin Blvd., Dublin CA, 94568. For more information about the District, visit www.dsrsd.com.
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