Omaha, Neb. -- Citing “strengthened financial position and growing service area,” Moody’s Investors Service upgraded Metropolitan Utilities District’s water system bond rating two notches to “Aa2" with a “stable outlook.” The District was previously rated “A1” by the rating agency. The District currently has $220 million of water revenue bonds outstanding.
“We are pleased that Moody’s has recognized the strong financial condition of the District,” said M.U.D. President Scott Keep. “By raising the District’s rating two steps, not a common event, this is a very strong endorsement of the financial decisions of our Board and the impressive financial management of our staff.”
In addition to noting the District’s growing service area, Moody’s noted the District’s improved liquidity and moderate debt burden. The District serves more than 200,000 water and gas customers located within 241 square miles in Omaha and nearby communities. In 2016, its 15 leading water customers represented only 7 percent of revenue, a statistic that speaks to the diversity of its service area economy. The rating agency also described the District’s debt service coverage as “healthy.”
M.U.D. Chief Financial Officer Debra Schneider said, “This upgrade validates the sound fiscal policies the board and staff of the District have worked hard to develop and implement. Specifically, our focus on improving liquidity, meeting debt service coverage, maintaining a moderate debt burden and solid asset management. We continue to responsibly invest in infrastructure to ensure safe, reliable and cost-effective service to our customers.”
About Metropolitan Utilities District
M.U.D. provides safe, reliable, and cost-effective natural gas and water services to our community. We serve safe drinking water to 211,263 customers in the metropolitan Omaha area and maintain nearly 27,000 hydrants for fire protection. As the fifth largest public gas utility in the United States, we also serve natural gas to 227,106 customers. We are a public utility and proud to be customer-owned. The District is governed by a board of seven directors, elected by our customer-owners. Visit www.mudomaha.com for more information.
Moody's detailed report is included in the PDF file below.