News from City Hall
City Communications Office
City of Kansas City, Mo.
CONTACT: Tammy Queen, 816-513-1019
FOR IMMEDIATE RELEASE: Jan. 26, 2012
City’s water system bond ratings affirmed
Moody’s Investors Service and Standard and Poor’s Ratings Services have affirmed the ratings for the City of Kansas City, Mo.’s outstanding Water Revenue Bonds at Aa2 and AA+, respectively. The ratings also apply to the upcoming issuance of Water Revenue Bonds to be priced on Feb. 7, 2012, in the maximum amount of $61 million. The proceeds of the upcoming bond sale will be used for water treatment plant improvements, large water main improvements and the continuation of the small water main replacement program.
According to the report published by Standard and Poor’s Ratings Services, strengths of the City’s water system include a “strong and diverse service area economy” and “moderate rates, with timely rate increases.” Similarly, Moody’s Investors Service cites “stable contracts with surrounding municipalities” as a credit strength. Both credit rating agencies indicate that the water system’s debt is low compared to the physical assets of the system.
“These bond ratings affirm the importance of our efforts to improve debt service coverage and the cash position of the water fund,” said City Manager Troy Schulte. “With new management initiatives yielding positive results, our Water Services Department is focused on providing customers drinking water that is consistently rated as one of the best in the nation.”
Media inquiries and requests for information can be addressed to Tammy Queen, city treasurer in the Finance Department, at 816-513-1024.