Fitch Updates U.S. Water and Sewer Revenue Bond Rating Criteria
Fitch has identified four key rating drivers that affect the credit quality of water and sewer revenue bond issuers:
--Governance and Management: A utility's operating and fiscal health is highly dependent on the actions of the utility's employees and governing body;
--Financial Profile: Fitch evaluates both historical and forecast financial results to determine the ability of a utility to fund operating and capital needs and meet its debt obligations;
--Debt Profile: Fitch analyzes the level and structure of a borrower's debt in determining overall creditworthiness;
--Operating Profile: The ability of a utility to provide service to its customers and generate resources sufficient to meet its financial obligations is affected by a range of factors from the deployment of assets to the health of the service area.
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