South Valley Water Reclamation Facility, UT Outlook Revised To Positive On Member City#s Improving Credit Quality

Stocks and Financial Services Press Releases Wednesday June 20, 2018 09:30
CENTENNIAL--20 Jun--S&P Global Ratings

CENTENNIAL (S&P Global Ratings) June 19, 2018--S&P Global Ratings revised the outlook to positive from stable and affirmed its 'A+' long-term rating on the South Valley Water Reclamation Facility (SVWRF), Utah's series 2014 sewer revenue refunding bonds. At the same time, S&P Global Ratings assigned its 'A+' long-term rating to the SVWRF's series 2018 sewer revenue bonds. The outlook is positive.

The positive outlook reflects our view that there is at least a one-in-three chance that we could raise the rating if the overall credit quality of one of the participants, Midvale City, continues to improve. "This assumes that our view of the credit quality of the other two participants contributing payments on the parity obligation, South Valley Sewer District (SVSD) and West Jordan, does not weaken," said S&P Global Ratings credit analyst Malcolm D'Silva. The primary credit factors that we would examine in order to ascertain the extent of any improvement would likely be the following:

  • Continuation of Midvale's rising income metrics due to economic growth, notably in commercial and residential development, which could lead to an overall improvement in our view of the city's economic risk profile
  • Midvale's maintenance of all-in coverage metrics and liquidity that continue to trend positively as the city embarks on its six-year capital improvement plan (CIP)

The series 2018 bonds are secured by debt service assessments paid by SVSD and West Jordan from their respective sewer systems. SVSD is obligated to pay about 44% of debt service, and West Jordan the remaining 56%. SVWRF levies the debt service assessments as part of its charges for wastewater treatment. For the parity series 2014 bonds, West Jordan is obligated to pay about 88% of debt service, and Midvale the remaining 12%. There are no step-up provisions or requirements--each member participant is only obligated to pay its share. Therefore, our analysis is based on a weak link of the three systems. "Given the members' underlying credit quality, we view Midvale to be the weak link of the three systems," Mr. D'Silva added.

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column.


Latest Press Release

mai welcomes real estate developer CMC on November 19

Market for Alternative Investment (mai) will list Chaoprayamahanakorn pcl, a leading real estate developer onNovember 19, under the ticker symbol "CMC". The company has a market capitalization at its initial public offering (IPO) of THB 3.00 billion...

KTC - Chilito Mexican Grill - Farm Factory provide members special privileges for payments made using QR Pay in the KTC Mobile app.

Mrs. Pranaya Nithananon, Vice President - Credit Card Business, "KTC" or Krungthai Card Public Company Limited, provides KTC VISA and KTC MasterCard credit card members who make payments through KTC QR Pay in the "KTC Mobile" app worth Bt. 300 or more...

Photo Release: KBank opens new flagship branch and THE WISDOM Lounge at ICONSIAM

Mr. Wirawat Panthawangkul (3rd from left), KBank Senior Executive Vice President, and Ms. Chadatip Chutrakul (4th from left), Director of ICONSIAM Co., Ltd., and Chief Executive Officer of Siam Piwat Co., Ltd., participated in the opening ceremony of...

Photo Release: CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

Tengku Dato' Sri Zafrul Aziz, Group CEO of CIMB Group (right), and Brad Garlinghouse, Ripple CEO (left) commemorating the strategic collaboration between CIMB Group and Ripple to power instant payments across ASEAN at the Singapore FinTech festival 2018...

CIMB Group Joins RippleNet to Power Instant Payments Across ASEAN

CIMB is one of the first banks to leverage blockchain technology to tap into region's USD120 billion remittance business CIMB Group ("CIMB" or "the Group") and Ripple have entered into a strategic collaboration to enable instant cross border payments...

Related Topics