Moody’s Raises Fayetteville PWC Bond Rating to ‘Aa2’

Moody’s Investors Service has raised the bond rating for the Public Works Commission of the City of Fayetteville from ‘Aa3‘ to ‘Aa2’  on PWC’s $150 million outstanding revenue bonds.

According to the Moody Report, the Aa2 rating and stable outlook is based on PWC’s continued healthy financial operations with sound fiscal practices, the strong debt service coverage and adequate bond holder protection, and the large size stable customer base benefitting from the continued growth in and around Fort Bragg. The rating assignment reflects PWC’s low debt ratio, ample reserves and prudent management, as well as PWC’s decreased risk because of a five-year lease agreement of the Butler Warner Generation Plant to Progress Energy Carolinas (PEC).

The rating reflects several other strengths that Moody’s  believe support the rating, including:

  1. Competitive rate structure; among lowest in the state
  2. Sound fiscal practices with strong rate setting and transfer policies

Fayetteville PWC provides electric, water and wastewater services to over 114,000 customers in Fayetteville/Cumberland County.  Serving over 80,000 electric customers, PWC is the largest municipal electric system in North Carolina and the 35th largest municipal electric system in the United States.. PWC’s annual operating budget for FY2013 is $350 million.