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In This List
COMMENTS

U.S. Municipal Water And Sewer Utilities 2020 Sector Outlook: Finding Stability Between Headline Risk And Credit Risk

COMMENTS

History Of U.S. State Ratings

COMMENTS

U.S. State Ratings And Outlooks: Current List

COMMENTS

Sudden-Stop Recession Pressures U.S. States' Funding For Pension And Other Retirement Liabilities

COMMENTS

U.S. Local Government Mid-Year Sector View: Unprecedented And Unpredictable


U.S. Municipal Water And Sewer Utilities 2020 Sector Outlook: Finding Stability Between Headline Risk And Credit Risk

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State Of The Sector

The modal, or most common, rating in the U.S. municipal water and sewer utilities sector continues to be 'A+' (see chart 1). S&P Global Ratings views the sector overall as stable because we expect the trend of upgrades outpacing downgrades to continue, as the long-term trend remains steady at 2:1 (see chart 2 and table 1).

Chart 1

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Chart 2

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Table 1

Municipal Water And Sewer Utilities Sector Rating Transitions Summary And Trends, 2014-2019
2019 2018 2017 2016 2015 2014
No. of ratings 1,616 1,605 1,571* 1,650 1,638 1,568
% ratings changed during the year 5.87 4.78 7.10 13.94§ 8.61 4.40
Upgrades to downgrades 2.5:1 1.8:1 1.8:1 1.9:1 2.1:1 2.0:1
Positive outlooks 10 12 5 14 31 23
Total Non-stable Outlooks 32 27 11 42 70 55
Data as of Dec. 31, 2019. *The decrease in ratings was due to the reclassification of wholesale utilities. §We expected increased rating transitions given the January 2016 implementation of revised criteria.

Our prediction a year ago of a modest bounce-back in market activity in 2019 versus 2018 proved too conservative. Instead, the number of issues rose dramatically and total market activity by par amount in the utility sector was up 15% year over year (see chart 3). Given the current low interest rate environment where even taxable advance refunding deals might still be a viable option, and the likelihood that rates remain where they are for the duration of the year, long-term re-financing remains an economic option. The average yield to call generally was in the neighborhood of 5% in 2010, meaning 10-year call dates might offer savings via current refunding deals in 2020. Therefore any year-over-year growth in total capital market activity would most likely be driven by new money, remaining taxable refunding issuance and current refunding opportunities, many of which targeting callable Build America Bonds with par calls in 2020. Asset management and risk management are tools that utility managers are utilizing progressively more to foster better alignment between operations and financial resources. We would expect that utilities with well-defined capital plans that identify not just priorities but timing of projects and major programs to take advantage of the low rates and stable economy, and there is no shortage of need in this sector.

Chart 3

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Our guiding criteria for this sector, "U.S. Public Finance Waterworks, Sanitary Sewer, And Drainage Utility Systems: Rating Methodology And Assumptions," published Jan. 19, 2016, notes that we deem the industry risk for municipal utilities to be the most favorable, generally able to withstand economic cycles better than more competitive or dynamic sectors like retail or technology. It is also important to note that the median financial risk profile score for our approximately 1,600 rated utilities is a 2.1 on a scale of 1 to 6 with a score of '1' being the best (see "U.S. Municipal Water and Sewer Utility Sector is Stable as Median Ratios Show Improved Finances," published Aug. 23, 2019, on RatingsDirect). This indicates that generally utilities are not just less harmed by economic cycles, but that when the cycle does turn their relatively strong financial position puts them in better position to withstand a recession. December 2019, S&P Global Economics revised the odds of a recession starting within the next 12 months to 25%-30% from 30%-35% previously. Still, the risk is high compared with this time a year ago. (See "Credit Conditions North America: Recession Risk Has Eased For Now," Dec. 3, 2019).

We're Watching E, S, And G

Late last year the U.S. Environmental Protection Agency (EPA) was soliciting public comment on a long-awaited update to its lead and copper rule that, while planned for years, was made all the more urgent by the situations with Flint, Mich.'s and Newark, N.J.'s lead service lines. And earlier in the year the city of Baltimore was hit by a crippling ransomware attack.

Some of the communities dealing with these and other expensive disruptions are already characterized by below-average income indicators and lack of investment. Yet contaminant problems can arise for any utility of any size or demographic. And cyber-attackers are just as indiscriminant; municipalities are just as much on edge about potential computer hacks as businesses are. Ultimately, local decision-makers can play a key role in influencing to what extent their communities are subject to risks that become credit negatives.

These are among the types of environmental, social, and governance issues that can influence our view of credit quality. So this year our outlook report differentiates key issues and credit drivers into either environmental, social, or governance risks and opportunities.

Environmental

Resilience.  Water conservation is a counter-intuitive business model. Municipal utilities might find themselves asking, if not requiring, customers to buy less water depending on the severity of the drought. Fortunately as of New Year's Day 2020, most of the country is not currently in a drought. Should spring rains not come or the summer be brutally hot and dry, most regions of the lower 48 states are reasonably well situated to withstand one (but only one) bad year, including:

  • Lake Lanier (Atlanta metropolitan statistical area), which is only two feet below full;
  • Texas lakes, which collectively are 81% full, although drought is creeping in statewide;
  • California State Water Project, whose reservoirs are in aggregate about 68% full;
  • Denver reservoirs, which combined are 87% full; and
  • Colorado River-dependent states. Even though Lakes Mead and Powell--combined, about half full--continue to suffer one of the driest 20-year stretches on record, the Bureau of Reclamation projects normal operations for Lake Mead because of better-than-average snowpack and, especially, because of the 2019 agreement among the seven affected states, the U.S. federal government, and Mexico to manage at reduced levels.

Currently, the Columbia River is forecast to be about 95% of normal even though the Pacific Northwest is experiencing a moderate drought that is expected to remain in place at least through April 2020. Regardless of where drought strikes next and how profound and prolonged it is, weather is generally the single most likely reason a utility experiences an unfavorable variance to budget and potentially a weakened financial profile.

The America's Water Infrastructure Act of 2018 (AWIA) established a number of key provisions that support drinking and clean water. While it does include grants and technical support for certain communities with lead service lines, and sections that aim to promote asset management (more on that below), we view two parts of AWIA as particularly auspicious for long-term credit quality:

  • Section 2013, which requires communities with at least 3,300 people to develop, or update, a risk and resilience self-assessment and related emergency response plan, and
  • Section 4101, which established a federal stormwater task force to identify ways to bring attention to and the financial capacity for stormwater infrastructure.

Both of these have great potential for prompting local leaders to identify, and potentially implement, measures that focus on pre-disaster resilience. Along with the Federal Emergency Management Agency's new Building Resilient Infrastructure and Communities (BRIC) grant program, we would expect utility managers and city leaders to eventually be better prepared against future disruptions, natural (including those exacerbated by climate change) or otherwise.

Regulatory risk.  PFAS refers broadly to a family of manmade compounds that have shown up in drinking water supplies in 1,398 sites over every state, but disproportionately in New Jersey, New York, Michigan and parts of California. Currently, it is a contaminant unregulated by the EPA, although as of this writing H.R. 535, if it becomes law, would compel the EPA to categorize PFAS as hazardous substances and establish maximum contaminant levels. Some states like California and New York aren't waiting and may set their own standards. Fortunately, PFAS can be removed from drinking water using existing treatment technology. Unfortunately, their nature--they're insidiously referred to as "forever chemicals"--is such that the treatment media at the plant has to be changed with much greater frequency and the disposal of that treatment media be handled with an additional degree of environmental sensitivity. At the very least, the potential exists for increased operating costs. In extreme cases, alternative water supplies might have to be sought, already the case in places such as communities near Philadelphia and in southern California. S&P Global Ratings does not view PFAS as a driver of credit, but instead potentially an opportunity that the utility sector can use to raise awareness about the overall efforts of source water protection from contaminants and, as the controversy over the scaling back of the federal "Waters of the United States" rule last year showed, agricultural runoff.

Social

Lead.  On the surface, lead service lines could just as easily be couched with environmental risks. The EPA estimates that there are between six million and 10 million lead service lines--the pipe that connects the customer to the city's water main--in the United States. The proposed update to the 1991 Lead and Copper Rule is in the request for comment phase through Feb. 12, 2020. Once finalized (assuming no changes), utilities will be required to test for lead in child care facilities and schools, establish and maintain a publicly available inventory of any lead service lines, and be more consistent and aggressive in testing and notification to the public when lead exceeds certain levels. For reference, 15 parts per billion, the proposed action level, would be about equivalent to pouring nearly an entire beer into an Olympic-sized swimming pool. Communities testing above the action level would be required to replace 3% of their lead service lines per year in perpetuity until the lead service lines are gone, a total cost that EPA estimated in a 2016 white paper could be between $16 billion and $80 billion. While the monthly per customer financial impact of replacing 3% of those lines per year might not be meaningful to an average customer, some of the highest profile cities that are dealing with lead are those that can least afford to act very quickly--meaning there is nothing "average" about their ability to pay. Therefore we would view lead service line replacement as a social and environmental justice issue, but not likely to be a credit issue.

Affordability.  Rates and charges continue to increase about 5% per year. As we noted last year, about half of that is a combination of capital expenditures and debt service. The remainder is rising operating costs. None of these will abate, leaving the burden on local ratepayers. In May 2019, the American Water Works Association (AWWA), Water Environment Federation, and National Association of Clean Water Agencies petitioned the EPA with a joint white paper, noting that the traditional rule of thumb comparing the water and sewer bill to the household's disposable income is not enough; they assert that there should also be second consideration that assesses relative levels of poverty. Shutting off delinquent accounts is not without controversy, and frequently puts the utility in a no-win situation of either being viewed in the court of public opinion as a bully, or instead allowing customer accounts receivable to continue to increase in size, age, and materiality and therefore being a poor financial steward.

S&P Global Ratings has been taking this exact two-dimensional approach since the 2016 adoption of our utility revenue bond criteria. We've previously said that there still does remain headroom for utilities to raise rates if they need to, but that headroom isn't without limits. We have observed that there has been a genuine boom in utilities that have implemented some type of customer assistance program, including income-based bill subsidization (where legally allowed), limits on shut-offs, and even free in-home water audits to help customers realize savings via reductions in consumption. Therefore, unless and until bad debts become in our judgment material enough to affect cash flow, and as long as collection attempts don't cause so much bad press that utility leaders defer critical decisions on finances or operations to avoid further scrutiny, we would also view this as more likely to create headline risk over credit risk.

Chart 4

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Aging workforce.  Succession planning and mentoring is an explicit rating factor, part of our operational management assessment (OMA). It's also one of the critically important issues the sector itself is worried about. In its 2019 state of the industry report, a survey of AWWA's membership, the professional organization notes that utility leaders are not just worried about replacing aging brick and mortar assets, but aging employees as well. Even with automation and technology leading to some expected attrition, the total number of utility sector jobs and the available labor pool are steadily diverging. Two notable quotes from respondents to the AWWA's "2019 State of the Water Industry" survey include:

  • "We don't have the qualified candidates and it takes multiple years to create [one]. Without the qualified workforce, we will acquire fines and citations for regulatory compliance and put ourselves at high risk," and
  • "We have a critical shortage of certified drinking water treatment operators in rural areas."

In our view, this is a serious issue that will most likely lead to trends such as pressure on operating expenses as utilities try to attract and retain talent, more use of concession agreements and private operators, and increased consolidation through mergers and acquisitions, especially among the very small systems that cannot go it alone anymore. Lastly, once those employees do retire, the related pension and post-employment benefit obligations are factors that could alter a utility's debt profile and financial capacity for the next 20 to 30 years.

Governance

Asset management.  It remains our view that there is a clear correlation between strong management and higher ratings. The mean OMA score for our 'AAA' rated utilities is a 2 on a scale of 1 to 6, with '1' being the best. For 'BBB-' utilities, the mean is a 4. For the financial management assessment (FMA), the results are even more striking: for 'AAA' systems, a typical FMA score is '1', for 'BBB-' systems, a '5'. The point is that highly rated utilities tend to have, among other common credit characteristics, a strong alignment between operating needs and the financial resources required to accomplish them. There are only so many things a utility manager can control. Not the weather, not macroeconomic conditions nor demographics. Perhaps public support and attracting and retaining staff. But definitely operations and finances. Asset management, simplified, is a way to inventory the physical parts that make up the system and know when they need maintenance versus needing replacement. The key for decision makers is "when," as that connects the operational need to ensuring that requisite levels of cash exist. Decision makers then have objective information for review and approval. We have observed that more and more utilities realize the benefits from having a robust asset management system in place. While there are definitely some cool gadgets and cutting edge technology in place, we do not view a utility having the latest and greatest as a prerequisite to stronger management assessments. But something is better than nothing, both for the utility's business continuity and for credit quality.

Cybersecurity and managing emerging risks.  At S&P Global Ratings we believe that cyber risk is an important emerging risk in the credit world of municipal utilities. Over time, the intensity and sophistication of cyber criminals have increased and it is becoming easier every day to become a cyber-criminal. Malicious actors involved in these attacks constantly evolve and find better ways to target their victims. Due to the rapid changes among criminals and their capabilities, technological countermeasures have almost become reactionary. The unique nature of public entities, including municipal utilities, attracts cyber criminals even more. Thus, we believe that cyber related risk issues will become worse before getting better. Water and wastewater utilities, being basic and critical for their customers, must be prepared to continue to provide essential services to them even in the event of a cyber-incident. Thus, response planning is critical and essential for them to be able to operate and maintain the trust of their customers in a cyber-event. The implementation of previously well-thought-out action plans and stopgaps is key to the successful navigation of a cyber-incident. Such events could include the implementation of emergency supply, manual system operations. and the activation of well-maintained backup data. Communication and transparency is also key when responding to cyber incidents. Even in severe cyber incidents, the served citizens implicit trust in their governments in underlined by their expectations that critical components such as water continue to function and provide services.

Federal policy changes.  We do not view the current climate in Washington, D.C. to be conducive to a federal infrastructure stimulus bill getting passed. There are about 50,000 community drinking water systems in the U.S. with a long history of resistance to consolidation or regionalization. To those communities arguing for local control, we say: be careful what you wish for. We believe attracting investments and bridging the infrastructure funding gap is going to have to start at home. The state revolving funds remain a viable, well-capitalized, and strongly managed option, and S&P Global Economics views the likelihood of interest rate changes in 2020 as low. Borrowing is always the highest cost of capital but for now still a relatively economic one. Those looking to finance system rehabilitation and replacement projects are going to have to take it upon themselves, save for those participating in EPA's Water Infrastructure Financing and Innovation Act program. Therefore our analysis will continue to include a subjective assessment of management's willingness to look to the long term, and how reasonably realistic the assumptions embedded in the long-term plan are vis-à-vis sources of capital. Those that are assuming an extraordinary level of federal cost sharing may be disappointed.

Looking Ahead

We anticipate that in 2020 we will continue to see modest, generally positive, rating transitions. Based on AWWA's "State of the Industry" survey, it is worth pointing out that utility managers are still feeling at least a little better about both where they are now and where they're headed. Their 2019 self-assessment jumped to 4.85 on a 1 to 7 scale from 4.34 just two years prior, with 7 being the most favorable view. That's the highest mark in 15 years, with the "where do you think things will be five years from now?" score tracking similarly upward. Even if a utility does not have its risk and resilience or emergency plans ready, management should expect our analysts to again press on the capital plan, rate adjustments and risk management, and how they all tie together, to demonstrate long-term rating stability.

Last Year's Rating And Outlook Actions

Table 2

Municipal Water And Sewer Utilities Rating Actions In 2019
--To-- --From--
Utility State Date Rating Outlook Rating Outlook
Miami Dade Cnty, Water and Sewer System FL Jan 07 AA- Stable A+ Stable
Yarmouth Wtr Dist, Water and Fire Protection System ME Jan 08 AA- Stable A+ Stable
North Hudson Swg Auth, Sewer System NJ Jan 10 A+ Stable A Stable
Moulton-Niguel Wtr Dist, Water and Sewer System CA Jan 15 AAA Stable AA+ Stable
Carroll's Creek Wtr Auth, Water System AL Jan 17 A+ Stable A Stable
Childersburg Wtrwks Swr & Gas Brd, Water, Sewer, and Natural Gas System AL Jan 17 A- Negative A Stable
Manchester, Water and Sewer System GA Jan 18 BBB Stable A- Stable
Gilmer, Water and Sewer System TX Jan 22 A Stable A+ Stable
Dahlonega, Water and Sewer System GA Feb 12 A Stable A- Stable
Twn of Mooresville, Water and Sewer System NC Feb 21 AA+ Stable AA Stable
Missoula, Water System MT Feb 22 A+ Stable A Stable
Suisun Solano Wtr Auth, Water System CA Feb 25 AA- Stable A+ Stable
Dorchester Cnty, Water and Sewer System SC Mar 11 AA Stable AA- Stable
St Ignace, Water System MI Mar 11 BBB- Stable BBB+ Negative
Jemison, Water and Sewer System AL Mar 19 B+ Stable BBB- Stable
Sacramento, Sewer System CA Mar 19 AA Stable AA- Stable
Americus, Water, Sewer, and Stormwater System GA Mar 20 A Stable A+ CreditWatch Negative
Higginsville, Sewer System MT Mar 20 BBB- Stable BB+ Stable
Harpeth Valley Utilities District, Water and Sewer System TN Mar 21 AA+ Stable AA Positive
Fort Mill Twn, Water and Sewer System SC Mar 22 AA Stable AA- Stable
North Sumter Cnty Util Dependent Dist, Water, Sewer, Irrigation and Fire Protection System FL Apr 08 AA- Stable A Stable
North Sumter Cnty Util Dependent Dist, Water, Sewer, Irrigation, and Fire Protection System 2nd Lien FL Apr 08 A+ Stable A- Stable
North Weld Cnty Wtr Dist, Water System CO Apr 09 AA Stable AA- Stable
Mesquite, Storm Water System TX Apr 11 AAA Stable AA+ Stable
The Bayou La Batre Utils Brd, Water and Sewer System AL Apr 11 BBB+ Stable A- Stable
Angola, Sewer System IN Apr 15 A+ Stable A Stable
Angola, Water System IN Apr 15 A+ Stable A Stable
Buffalo Mun Wtr Fin Auth, Water System NY Apr 15 A+ Stable A Stable
Fond du Lac, Water System WI Apr 15 A Stable A+ Stable
Baytown, Water and Sewer System TX Apr 16 AA- Stable A+ Positive
Silver City, Water and Sewer System NM Apr 29 BBB+ Stable A- Stable
San Mateo, Sewer System CA May 03 AA- Stable AA Stable
Sunrise, Water, Sewer, and Natural Gas System FL May 03 AA Stable AA- Stable
Dallas Cnty Wtr & Swr Auth, Water and Sewer System AL May 16 BBB Stable A- Stable
Pacifica, Sewer System CA May 20 AA Stable AA- Positive
Bunkie, Water and Sewer System LA May 21 BBB- Stable BBB+ Stable
Napa City, Water System CA May 21 AA Stable AA- Positive
Brevard Cnty, Water and Sewer System FL May 24 AA Stable AA- Stable
Fillmore, Sewer System CA May 28 A Stable BBB+ Positive
Kalamazoo, Sewer System MI May 28 AA- Stable AA Stable
Leesburg, Water, Sewer, and Natural Gas System FL May 29 AA- Stable A+ Stable
Cook Springs Wtr Auth, Inc., Water System AL May 31 A+ Stable A Stable
Henry Cnty Wtr Auth, Water System AL Jun 04 A- Stable A Stable
Sanitary Dist No. 1 of Marin Cnty, Sewer System CA Jun 17 AA Stable AA- Stable
Glendale, Water System CA Jun 24 AA- Stable A+ Stable
Gig Harbor, Water and Sewer System WA Jun 26 AA+ Stable AA Stable
Novato Sanitary District, Sewer System CA Jul 09 AAA Stable AA+ Stable
Covina, Sewer System CA Jul 11 AA- Stable A+ Stable
Brea, Water System CA Jul 16 AA Stable AA- Stable
Holdenville Pub Wks Auth, Sewer and Sewer System OK Aug 02 BB+ Negative BBB Stable
Alabaster Wtr Brd, Water System AL Aug 05 AA Stable A+ Stable
Petaluma, Sewer System CA Aug 08 AA+ Stable AA Stable
Warrior River Wtr Auth, Water System AL Aug 09 A Stable A+ Stable
Lafourche Parish Wtr Dist #1, Water System LA Aug 14 AA- Stable AA CreditWatch Negative
Sangamon Cnty Wtr Reclamation Dist, Sewer System IL Aug 14 BBB+ Stable A- Stable
Limestone Cnty Wtr & Swr Auth, Water System 2nd Lien AL Aug 15 AA- Stable A Stable
Limestone Cnty Wtr & Swr Auth, Water System AL Aug 15 AA- Stable A+ Stable
Seminole Cnty, Water and Sewer System FL Aug 21 AA+ Stable AA Stable
Lawrence, Water and Sewer System IN Aug 23 A Stable A- Positive
Hampton Roads Sant Dist, Sewer System 2nd Lien VA Aug 28 AA+ Stable AA Stable
Dekalb-Jackson Wtr Supply Distr Inc., Water System AL Sep 03 B Negative A- CreditWatch Negative
Corpus Christi, Water, Sewer, Storm Water, and Natural Gas System 2nd Lien TX Sep 09 AA- Stable A+ Stable
Berkeley Cnty, Water, Sewer, and Solid Waste System SC Sep 12 AA+ Stable AA Stable
North Texas Municipal Water District, Buffalo Creek Interceptor Sewer System TX Sep 13 AA Stable A+ Stable
North Texas Municipal Water District, Sewer System Rockwall and Heath Contract Revenues TX Sep 13 AA Stable A+ Stable
Lacey, Water, Sewer, and Stormwater System WA Sep 16 AA+ Stable AA Stable
Greene Twp Mun Auth, Sewer System PA Sep 17 A+ Stable A Stable
Conemaugh Twp Mun Auth, Water System PA Sep 23 A- Stable A Stable
Merced Irr Dist, Water and Hycroelectric System CA Sep 27 A+ Stable A Stable
Beaufort-Jasper Cnty Wtr & Swr Auth, Water and Sewer System SC Oct 07 AA+ Stable AA Stable
Arapahoe Cnty Wtr & Wastewtr Auth, Water and Sewer System 2nd Lien CO Oct 08 AA Stable AA- Stable
Latrobe Mun Auth, Sewer System PA Oct 10 A Stable A- Stable
Gibson Cnty Mun Wtr Dist, Water System 2nd Lien TN Oct 22 A Stable A+ Stable
Mountain Regl Wtr Spl Service Dist, Water System UT Oct 23 AA- Stable A+ Stable
Garland, Water and Sewer System TX Oct 25 AA- Stable AA Stable
Spartanburg San Swr Dist, Sewer System SC Oct 29 AA Stable AA- Stable
Jenks Aquarium Auth, Water System 1st Lien, Sewer System 2nd Lien OK Oct 31 AA- Stable A+ Stable
Jenks Pub Wks Auth, Water and Sewer System OK Oct 31 AA Stable AA- Stable
Portland, Sewer System OR Nov 01 AA+ Stable AA Stable
Portland, Sewer System 2nd Lien OR Nov 01 AA Stable AA- Stable
South Gate Util Auth, Water System CA Nov 05 AA- Stable A+ Stable
Stockton, Water System 2nd Lien CA Nov 12 A Positive A- Positive
Lake Stevens Swr Dist, Sewer System WA Nov 15 A+ Stable A Stable
Norco, Water and Sewer System CA Nov 15 AA- Stable A Stable
Valparaiso, Sewer System IN Nov 15 AA- Stable A+ Stable
Elmore Wtr & Swr Auth, Water System AL Nov 18 A- Stable AA- Stable
Santa Paula, Water System CA Nov 26 A Stable A+ Stable
Wichita Falls, Water and Sewer System TX Nov 27 A+ Stable A Stable
Fort Oglethorpe, Water and Sewer System GA Dec 03 AA- Stable A+ Stable
Joint Mun Wtr Swr Comm, Water and Sewer System SC Dec 04 AA+ Stable AA Stable
Marysville, Sewer System OH Dec 06 AA- Stable A Stable
Clearwater Water and Sewer System FL Dec 12 AA+ Stable AA Stable
Schererville Town Sewer System IN Dec 12 A+ Stable AA- Stable
North & South Shenango Jt Mun Auth Sewer System PA Dec 13 BBB Stable A- Stable
Carter Cnty First Util Dist Water System TN Dec 18 A Stable A- Positive

Table 3

Municipal Water And Sewer Utilities Outlook Revisions In 2019
--To-- --From--
Utility State Date Rating Outlook Rating Outlook
Auburndale, Water and Sewer System 2nd Lien FL Jan 11 A- Positive A- Stable
Childersburg Wtrwks Swr & Gas Brd, Water, Sewer, and Natural Gas System AL Jan 17 A- Negative A Stable
Manchester, Water and Sewer System GA Jan 18 BBB Stable A- Stable
Gilmer, Water and Sewer System TX Jan 22 A Stable A+ Stable
Racine, Water System WI Feb 01 A+ Negative A+ Stable
Eastman, Water and Sewer System GA Feb 12 A- Stable A- Negative
Holley-Navarre Wtr Sys Inc, Water and Sewer System FL Feb 15 A+ Negative A+ Stable
Keokuk Mun Wtr Wks, Water System IA Feb 15 A- Negative A- Stable
Annapolis, Water and Sewer System MD Feb 19 AA- Positive AA- Stable
Estill, Water and Sewer System SC Feb 22 BBB Negative BBB Stable
Sault Ste. Marie, Water and Sewer System MI Mar 06 A- Stable A- Negative
Dorchester Cnty, Water and Sewer System SC Mar 11 AA Stable AA- Stable
St Ignace, Water System MI Mar 11 BBB- Stable BBB+ Negative
Cross Anchor Util Dist, Water System TN Mar 19 BBB+ Stable BBB+ Negative
Jemison, Water and Sewer System AL Mar 19 B+ Stable BBB- Stable
Americus, Water, Sewer, and Stormwater System GA Mar 20 A Stable A+ CreditWatch Negative
Harpeth Valley Utilities District, Water and Sewer System TN Mar 21 AA+ Stable AA Positive
Pennichuck Wtr Works, Inc, Water System NH Mar 21 A+ Negative A+ Stable
Fort Mill Twn, Water and Sewer System SC Mar 22 AA Stable AA- Stable
Artesia, Water and Sewer System NM Mar 26 A+ Negative A+ Stable
Raytown, Sewer System MO Mar 26 A+ Negative A+ Stable
Northeast Morgan Cnty Wtr & Swr Auth, Water System AL Apr 03 A+ Stable A+ Negative
Lower Tule River Irr Dist, Irrigation System CA Apr 04 A- Stable A- Negative
Mesquite, Storm Water System TX Apr 11 AAA Stable AA+ Stable
The Bayou La Batre Utils Brd, Water and Sewer System AL Apr 11 BBB+ Stable A- Stable
Fond du Lac, Water System WI Apr 15 A Stable A+ Stable
Baytown, Water and Sewer System TX Apr 16 AA- Stable A+ Positive
Silver City, Water and Sewer System NM Apr 29 BBB+ Stable A- Stable
San Mateo, Sewer System CA May 03 AA- Stable AA Stable
Dallas Cnty Wtr & Swr Auth, Water and Sewer System AL May 16 BBB Stable A- Stable
Braselton Twn, Water and Sewer System GA May 21 A Positive A Stable
Bunkie, Water and Sewer System LA May 21 BBB- Stable BBB+ Stable
Daly City, Water System CA May 28 AA+ Negative AA+ Stable
Kalamazoo, Sewer System MI May 28 AA- Stable AA Stable
Yuba City, Sewer System CA May 29 AA- Stable AA- Negative
Stamford, Sewer System CT May 31 AA+ Positive AA+ Stable
Tucson, Water System AZ Jun 03 AA Positive AA Stable
Henry Cnty Wtr Auth, Water System AL Jun 04 A- Stable A Stable
Santa Fe Springs Pub Fincg Auth, Water System CA Jun 10 A Positive A Stable
Lakewood Wtr Dist, Water System WA Jun 13 AA- Positive AA- Stable
Gig Harbor, Water and Sewer System WA Jun 26 AA+ Stable AA Stable
Douglas Wtr & Fire Prot Auth, AL Water System AL Jul 19 A- Negative A- Stable
Upland, Water System CA Jul 26 AA- Stable AA- Negative
Stockton, Sewer System CA Jul 30 A Positive A Stable
Ohio Twp San Auth, Sewer System PA Aug 01 A+ Stable A+ Negative
Holdenville Pub Wks Auth, Sewer and Sewer System OK Aug 02 BB+ Negative BBB Stable
Dinuba, Sewer System CA Aug 06 A- Negative A- Stable
Woodland, Water System CA Aug 06 A Stable A Negative
Lynwood, Water and Sewer System CA Aug 08 A+ Stable A+ Negative
Warrior River Wtr Auth, Water System AL Aug 09 A Stable A+ Stable
Lafourche Parish Wtr Dist #1, Water System LA Aug 14 AA- Stable AA CreditWatch Negative
Sangamon Cnty Wtr Reclamation Dist, Sewer System IL Aug 14 BBB+ Stable A- Stable
Marin Mun Wtr Dist, Water System 3rd Lien CA Aug 16 AA Stable AA Negative
Marin Mun Wtr Dist, Water System CA Aug 16 AA+ Stable AA+ Negative
Marin Mun Wtr Dist, Water System 2nd Lien CA Aug 16 AA+ Stable AA+ Negative
Lehigh Cnty Auth, Allentown Concession Water and Sewer System PA Aug 23 A Stable A Negative
Hampton Roads Sant Dist, Sewer System 2nd Lien VA Aug 28 AA+ Stable AA Stable
Dekalb-Jackson Wtr Supply Distr Inc., Water System AL Sep 03 B Negative A- CreditWatch Negative
Los Angeles Dept of Wtr & Pwr, Water System CA Sep 03 AA+ Negative AA+ Stable
Corpus Christi, Water, Sewer, Storm Water, and Natural Gas System 2nd Lien TX Sep 09 AA- Stable A+ Stable
Berkeley Cnty, Water, Sewer, and Solid Waste System SC Sep 12 AA+ Stable AA Stable
North Texas Municipal Water District, Buffalo Creek Interceptor Sewer System TX Sep 13 AA Stable A+ Stable
North Texas Municipal Water District, Sewer System Rockwall and Heath Contract Revenues TX Sep 13 AA Stable A+ Stable
Lacey, Water, Sewer, and Stormwater System WA Sep 16 AA+ Stable AA Stable
Pickens Cnty Wtr Auth, Water System AL Sep 16 A Negative A Stable
Greene Twp Mun Auth, Sewer System PA Sep 17 A+ Stable A Stable
Seymour, Sewer System IN Sep 20 A+ Stable A+ Negative
Conemaugh Twp Mun Auth, Water System PA Sep 23 A- Stable A Stable
Beaufort-Jasper Cnty Wtr & Swr Auth, Water and Sewer System SC Oct 07 AA+ Stable AA Stable
Kaukauna, Storm Water System WI Oct 07 A+ Stable A+ Negative
Killeen, Water and Sewer System TX Oct 07 AA Negative AA Stable
Latrobe Mun Auth, Sewer System PA Oct 10 A Stable A- Stable
La Habra, Water System CA Oct 17 AA Negative AA Stable
Gibson Cnty Mun Wtr Dist, Water System 2nd Lien TN Oct 22 A Stable A+ Stable
Mountain Regl Wtr Spl Service Dist, Water System UT Oct 23 AA- Stable A+ Stable
Garland, Water and Sewer System TX Oct 25 AA- Stable AA Stable
Columbus, Water and Sewer System GA Oct 28 AA+ Negative AA+ Stable
Spartanburg San Swr Dist, Sewer System SC Oct 29 AA Stable AA- Stable
Jenks Aquarium Auth, Water System 1st Lien, Sewer System 2nd Lien OK Oct 31 AA- Stable A+ Stable
Portland, Sewer System OR Nov 01 AA+ Stable AA Stable
Portland, Sewer System 2nd Lien OR Nov 01 AA Stable AA- Stable
Etowah Wtr & Swr Auth, Water and Sewer System 2nd Lien GA Nov 08 A+ Positive A+ Stable
Lake Stevens Swr Dist, Sewer System WA Nov 15 A+ Stable A Stable
Elmore Wtr & Swr Auth, Water System AL Nov 18 A- Stable AA- Stable
Porterville, Sewer System CA Nov 20 AA- Negative AA- Stable
Santa Paula, Water System CA Nov 26 A Stable A+ Stable
Wichita Falls, Water and Sewer System TX Nov 27 A+ Stable A Stable
Joint Mun Wtr Swr Comm, Water and Sewer System SC Dec 04 AA+ Stable AA Stable
New Haven, Water System IN Dec 09 A- Stable A- Negative
Riverside Water CA Dec 17 AAA Negative AAA Stable
North Miami Beach Water System FL Dec 20 A+ Positive A+ Stable

This report does not constitute a rating action.

Primary Credit Analyst:Theodore A Chapman, Farmers Branch (1) 214-871-1401;
theodore.chapman@spglobal.com
Secondary Contacts:Alexandra Rozgonyi, Centennial (1) 303-721-4824;
alexandra.rozgonyi@spglobal.com
Omid Rahmani, Farmers Branch + 1 (214) 765 5880;
omid.rahmani@spglobal.com
Melody W Vinje, Centennial + 1 (303) 721 4163;
melody.vinje@spglobal.com
Research Contributor:Alan B Shabatay, New York + 1 (212) 438 9025;
alan.shabatay@spglobal.com

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