Otay Water District Executes Successful Bond Sale
Standard & Poor’s Reaffirms District’s AA Credit Rating
On Oct. 11, the Otay Water District executed a successful bond sale that is expected to close on or about Nov. 1. The water revenue bond will fund $28 million of District’s capital projects during the next three years and will refinance $6.9 million of the District’s 1996 Variable Rate Demand Certificates of Participation (COPs) to a fixed rate of interest. By refinancing its 1996 Variable Rate COPs to a fixed rate, the District has eliminated the risk of increasing costs for customers due to rising interest rates.
In connection with the sale of the bonds, on Sept. 26, Standard & Poor’s Global Ratings (S&P) reaffirmed the District’s AA credit rating based on S&P’s independent assessment of the District’s overall capacity to meet its financial obligations. The District’s current rating relates to the District’s water-service related side of its business. To view the full S&P report, click here.
“The District’s Board of Directors is proud of the reaffirmed credit rating and the staff’s continued efforts to manage the District’s resources in a transparent and fiscally responsible manner,” said Board President Tim Smith.