S&P Global Ratings Upgrades Credit Rating of Metropolitan Utilities District

S&P Global Ratings has upgraded its credit rating on the Metropolitan Utilities District’s water revenue bonds to ‘AA+’ with a stable outlook, marking the fourth upgrade in the last decade. M.U.D. was previously rated ‘AA’ by the rating agency.

According to the S&P report, the rating reflects the system’s affordable rates and comprehensive long-term planning to address lead pipe replacement and water supply infrastructure updates to support the growing customer service territory.

“We appreciate the upgrade by S&P and are proud to now carry the second highest credit rating of any municipal water system,” said M.U.D. President Mark Doyle. “With our board’s support, our financial position has steadily improved since 2011. This is great news for our customer-owners.”

S&P raised the rating after considering the following factors:

• Strong revenue generation: The utility’s revenue supports liquidity levels and debt service coverage
• Debt burden: The planned increase in the utility’s debt burden through 2029 to address infrastructure needs is manageable given its strengths in financial performance
• Strong operational management: The utility is addressing aged infrastructure, water redundancy, cyber security, and assessments of climate risk
• Good financial management: Policies and practices include maintenance of long-term planning and regular budget updates ensuring a strong financial position

M.U.D. Chief Financial Officer Mark Myers said, “We are pleased with this announcement and believe the rating upgrade validates our board and staff’s effective financial management and long-term planning of the District. It also will contribute to our ability to issue bonds at favorable interest rates in the future.”

The complete S&P report can be viewed or downloaded here, and the S&P Global press release is available on their website.

Entities with S&P ratings are required to participate in regular credit surveillance reviews as part of their rating agreement. These reviews are crucial for maintaining transparency and trust in S&P’s credit ratings, which influence investment decisions worldwide. The rating outcome impacts the entity’s borrowing costs and market perception.

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About M.U.D.: The mission of M.U.D., headquartered in Omaha, Nebraska, is to provide safe, reliable and cost-effective natural gas and water services to our community. Overall, M.U.D. serves more than 600,000 people in the metro area. M.U.D. is the fifth largest public natural gas utility in the United States, serving customer-owners in Omaha, Bennington, Fort Calhoun, Springfield, Yutan and Bellevue. M.U.D. also provides high quality drinking water to customer-owners in Omaha, Bellevue, Bennington, Carter Lake, La Vista, Ralston, Waterloo and the Papio-Missouri Natural Resources District (which supplies water to Fort Calhoun). For more information, visit mudomaha.com.