Fitch Ratings recently affirmed the rating of Greer, South Carolina’s Commission of Public Works $22.9 million combined utility system revenue bonds, series 2002 and 2007, at “AA-“. Fitch has also affirmed CPW's Issuer Default Rating at “AA-.”
The Rating Outlook is Stable.
The “AA-“ rating “reflects CPW's very strong financial performance, consistently low operating costs and very strong revenue defensibility, as well as certain constraints related to the utility's power supply arrangement,” Fitch said.
CPW's leverage remains very low, with net adjusted debt to adjusted funds available for debt service declining to 3.9x in fiscal 2023. Fitch expects leverage will remain very low as operating cash flow is likely to stay healthy during the five-year period ending 2028.
“CPW's revenue defensibility is bolstered by strong economic growth in its service area, competitive rates, autonomous rate-setting ability, and the monopolistic revenue source characteristics of each of the electric, natural gas, water and wastewater systems. Operations at the water and wastewater utilities remain adequate and are supported by sufficient supply and treatment capacity,” it said.
The natural gas utility maintains ample supply through its connection with the Transcontinental Pipeline, Fitch noted.
