Post Tagged with: "Fitch Ratings"

Cyberattacks on industrial control systems/operational technology are more likely to have a credit and ESG impact than a corresponding attack on IT, Fitch Ratings says. Operational technology (OT) systems are vital production technologies that prioritize product or service availability and human safety and are oftenRead More

A rising interest rate environment could prove a boon for the Water Infrastructure Finance and Innovation Act (WIFIA) program, according to a new Fitch Ratings report. The WIFIA loan program has been hugely successful for U.S. water utilities but is currently oversubscribed. The size ofRead More

By Doug Scott U.S. water and sewer utilities will see some weakening in their financial profiles over the next several months, effectively reversing a trend of steadily declining leverage in recent years as utilities limited the rate of debt growth and posted robust operating margins.Read More

The current drought in California could cut into water utility revenues and pressure financial margins, Fitch Ratings says. Statewide water conservation mandates could be announced this fall, and some water agencies have already initiated cutbacks. After two years of dry conditions, California is experiencing aRead More

According to Fitch Ratings, mandatory water cuts from the Colorado River for the 2022 water year were recently announced by the U.S. Bureau of Reclamation (USBR) in its Colorado Basin August 2021 24-month study. Per the study, Lake Mead will operate under a tier 1Read More

Despite increased delinquencies and some bad debts, U.S. water utilities have fared better than originally expected a year after the onset of the coronavirus pandemic, according to Fitch Ratings’ inaugural peer review of the sector. In fact, most water utilities saw improved revenue growth year-over-yearRead More

The recent Colonial Pipeline cyberattack illustrates the broader financial effects that can result from attacks on critical public infrastructure, Fitch Ratings says. A breach of critical assets, such as power or water supply or public transportation, that halts service could result in widespread public andRead More

  Water and sewer credit ratings incorporate an assessment of an entity’s resiliency to manage unexpected events, including cyberattacks, which could pose financial and operating risks that ultimately affect utility credit quality, Fitch Ratings says. Event risks like cyberattacks are considered asymmetric risks per Fitch’sRead More

The U.S. Environmental Protection Agency’s (EPA) new Lead and Copper Rule (LCR) is not expected to impact utility credit quality over the near-term, but it could have a material effect on certain water utilities’ capex and credit profiles over the medium- to long-term, particularly forRead More

Growth in annual revenue accelerated for U.S. water utilities over the last year while leverage declined, according to Fitch Ratings in a new report. According to Fitch, revenue increased almost 5 percent in the current median cycle with most of the growth again coming fromRead More