PWC’s Bond Ratings Confirmed in 2020
The Fayetteville Public Works Commission has had its Moody’s “Aa2” credit rating and Fitch “AA” rating confirmed by the rating agencies, with both also stating PWC’s rating outlook as stable.
Moody’s confirmed PWC’s Aa2, stable credit rating citing PWC’s strong financial metrics. Aa ratings are judged to be high quality and very low credit risk and are the second highest rating an organization can receive.
In its credit opinion issued on August 21, 2020, Moody’s listed sound fiscal practices with strong rate setting and transfer policies, competitive rate structures, among the lowest in the state and ample liquidity among PWC’s credit strengths.
The recent signing of a new agreement with Duke Energy Progress, which establishes a stable power supply through 2032, also supported PWC’s strong credit profile.
PWC’s stable rating outlook reflects the expectation that PWC’s financial position will remain sound given long-standing history of conservative budgetary practices and asset management.
“This affirmation of our credit rating is an indication of PWC’s overall financial strength and our ability to maintain first class utility services for our customers, “ said David Trego, PWC CEO/General Manager.
Fitch ratings affirmed PWC’s AA rating on July 9, 2020. Fitch rated PWC as very high credit quality, the second highest of its rating scale, and noted PWC was a very low default risk and has very strong capacity for payment of financial commitments.
In its assessment, Fitch listed PWC’s rate flexibility as very strong, reflecting PWC’s autonomous rate-setting ability and its competitive rates relative to other NC utilities. PWC’s residential electric rates are competitive and are 104% of the state average in 2018. PWC’s combined electric, water, and wastewater residential bills are competitive with the top 10 cities in the state.
“We have been able to make smart investments that has PWC as a national leader in overall system reliability, “ said Trego. “We have been able to do this and also maintain, not only stable rates for our customers, but rates that are among the lowest combined for electric, water and wastewater in North Carolina. “