Fitch Ratings: Debt for utilities would increase under proposed PFAS rules

According to Fitch Ratings, the U.S. Environmental Protection Agency’s (EPA) recently proposed rule setting limits on per- and polyfluoroalkyl substances (PFAS) in drinking water would increase public water utilities’ debt burden as a result of the added costs of compliance.

A recent press release from Fitch says the strong rate flexibility and capacity for additional debt exhibited by water systems is expected to limit the impact on credit quality, but will depend on the final scope of rule. EPA expects to finalize the rule by the end of 2023.