Fayetteville PWC’s Bond Rating Raised to AA- by Standard & Poor’s
PWC’s Electric Rates Rank Among Lowest in the State

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December 21, 2007

Standard & Poor’s Rating Service has raised the Fayetteville Public Works Commission’s revenue bond rating from A+ to AA- noting the utility has a strengthening financial profile with a stable outlook.  The higher rating reflects the completion of the city’s multi-phase annexation program, PWC’s gradual strengthening financial profile, the system's very competitive rates, and management's pro-active strategic planning.
 
The Report cited PWC’s financial profile as strengthening as a result of an increased customer base, rate increases and growing rate stabilization funds.  Standard & Poor’s said Fayetteville’s electric rates fall below the state averages for all customer classes and its healthy rate stabilization fund allows management to maintain this competitive position.  Water and sewer rates were also listed as being competitive with rates in neighboring communities with rates below average for water and slightly above average for wastewater services.

Fayetteville's electric, water and sewer utility systems' overall business position is above average, (3 on a 10-point scale, with '1' being the strongest) incorporating the factors cited above as well as well-managed assets and low operating risk.  Much of the debt issued by governmental entities, such as PWC, is rated by private, independent bond rating companies. The bond ratings reflect the degree of risk associated with the bonds and typically these bonds are issued at lower interest rates. 

In addition, Standard & Poor’s assigned its AA- rating to PWC’s series 2008 revenue bonds.  As of June 30, 2007, PWC had $237.4 million of debt outstanding.

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