Water Districts Bond Rating Downgrade...

Water Districts Bond Rating Downgraded - Should this be in the news.

Posted in the Mineral Wells Forum

jonsalis

Weatherford, TX

#1 Oct 21, 2015
Palo Pinto County Municipal Water District # 1 recently had it's bond rating downgraded from A+ to AA-. May not sound like much of a slide, but a line has been crossed, a glimmer of financial risk is evident to those who rate our Water District.

Cited Rating Drivers are:

1. GROWING DEBT
2. LONG-STANDING RELATIONSHIP WITH CITY
3. PRESSURED CITY'S FINANCES
4. AGREEMENT WITH BRAZOS ELECTRIC POWER CO-OPERATIVE
5. EXTENSIVE $ 95 MILLION CAPITAL PROJECT

Rating Sensitivities:

1. DETERIORATION OF THE CITY OF MINERAL WELLS' FINANCIAL PROFILE
2. MANAGEMENT OF DISTRICT DEBT

Other Considerations:

1. CREDIT PROFILE
2. PERSISTENT DROUGHT PRESSURES
3. WEAKENED CITY FINANCES (Mineral Wells)
4. DISTRICT LEVERAGING GROWS: COVERAGE SOFTENS - Debt per Capita growing
5. AGREEMENT WITH BRAZOS ELECTRIC POWER CO-OPERATIVE CRUCIAL
6. DISTRICT RELATIONSHIP WITH CITY
7. LIMITED, CONCENTRATED ECONOMY

To read the Fitch Report in it's entirity visit: https://www.fitchratings.com/site/fitch-home/...

The Water District Holds Meetings Monthly at Holiday Hills Country Club , the 1st Friday of every month at 12:00 Noon- Attend-Listen-Learn- Question
Lynn J

Frisco, TX

#2 Oct 21, 2015
First off the Water Districit only holds a meeting when they deem something important re: Turkey Peak per what Scott Blaser told me at meeting I attended in Aug and he told me when they had another meeting, he'd let me know. So since haven't heard from him, I 'assume' no meetings held since.

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