Pinellas AA Sewer Revenue Bond Rating Affirmed By Fitch

PINELLAS COUNTY, FL — International credit rating agency Fitch Ratings, Inc. has affirmed Pinellas County’s sewer revenue bond rating of AA, with an upgraded outlook from stable to positive. The AA bond rating and sewer system’s stand-alone credit profile of AA reflect the system’s modest debt level in fiscal year 2019 within a framework of very strong projected revenue and very low operating risks.

“Even as we continue to implement a robust capital program to enhance our sewer infrastructure, this improved outlook reflects the sound financial management we practice in our mission to deliver essential services to Pinellas County Utilities’ customers,” Utilities Director Megan Ross said. “The recent improvement is confirmation of our continued exemplary financial performance and the thoughtful guidance of the Board of County Commissioners.”

The change in outlook from stable to positive reflects Fitch’s expectation that net leverage—the ratio of debt to earnings—is currently very low and will remain low in the future in support of a higher rating. The leverage profile has improved over the last five years and is expected to remain very favorable even as the system tackles the most expensive years of its capital improvement plan (CIP) in the near-term.

Pinellas County Utilities’ CIP systematically evaluates demands for sewer resources based on a prioritization matrix reflecting long term goals and objectives. The plan serves as a working blueprint for maintaining and improving the county’s sewer infrastructure in conjunction with financial planning for approximately 146,000 residential and commercial customers.

A good bond rating identifies the stability and quality of Pinellas County’s finances, proving its credit worthiness. It also greatly influences interest rates and bond pricing for future issuances of debt.

This press release was produced by the Pinellas County Government. The views expressed here are the author’s own.