In spite of the financial crisis and economic recession that are challenging many state and municipal agencies, the Arapahoe County Water and Wastewater Authority received good news from Standard and Poor’s credit rating agency.

Standard and Poor’s upgraded the water authority’s bond rating outlook from A+ to AA-, making it one of the highest rated water issuers in the state.

A rating of A is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions, while an AA rating means the obligor’s capacity to meet its financial commitment is very strong.

The quality of any bond is based on the issuer's financial ability to make interest payments and repay the loan in full at maturity. Rating services help to evaluate the credit worthiness of bonds.

Credit ratings are one of several tools that investors can use when making decisions about purchasing bonds and other fixed income investments.

“Being able to achieve this type of success, especially in economic times such as these, is due to well thought out capital improvement projects and a strong financial plan,” said Arapahoe County Water and Wastewater Authority General Manager Gary Atkin.

In upgrading Arapahoe County Water and Wastewater Authority’s credit rating, Standard and Poor’s report, published on January 12, 2009, noted strong financial metrics as grounds for the high credit rating. The Authority also has in place good economic fundamentals to handle pressures from housing market vulnerabilities, employment softness, or cost-of-service inflation, according to the report.

Solid management, which includes a demonstrated willingness to adjust rates, long-term planning to fund key service components like water supply or regulatory-driven capital expenditures, and the ability to serve the needs of a growing community, also were noted credit characteristics.

“Arapahoe County Water and Wastewater Authority’s mission statement is to provide unparalleled service and accountability to our customers while furnishing the highest quality water. We strive daily to meet our mission statement, and the result can at times be as gratifying as an AA- rating from Standard & Poor’s.”

Higher credit ratings generally mean lower borrowing costs, and reduced capital costs translate to savings for Arapahoe County Water and Wastewater Authority customers.

Arapahoe County Water and Wastewater Authority is a political subdivision formed in 1988 by an agreement between Arapahoe County, and the Arapahoe Water and Sanitation District for the purpose of developing water resources, systems and facilities, wastewater collection and treatment facilities for the Arapahoe County Water and Wastewater Authority service area. The Authority serves an area of more than eight square miles in the southeastern Denver metropolitan area, approximately 10 miles from downtown Denver.