S&P Global upgrades Miami-Dade Water and Sewer bond ratings

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The Miami-Dade Water and Sewer Department (WASD) is making waves — in a good way.

In a resounding vote of confidence, S&P Global Ratings lifted its ratings on several bonds of WASD, which is in the midst of an $8.6 billion capital improvement program.

“To be recognized by such a renowned rating agency is a testament to the responsible fiscal leadership at WASD,” Miami-Dade Mayor Daniella Levine Cava said in a statement.

“Our water professionals not only look for innovative ways to implement new technologies that ensure our community is future-ready and has access to safe drinking water for generations to come, but they are just as committed to employing inventive financing opportunities. This allows the department to be a responsible steward of not only our natural resources, but also of our residents’ contributions.”

The rating boosts, announced Tuesday, included a jump to “AA” from “AA-” for senior-lien water and sewer system revenue debt and an “AA-” to “A+” on the county’s outstanding subordinate-lien water and sewer system revenue bonds and loans.

S&P also categorized WASD’s bond outlook as stable and assigned an “AA” long-term rating to the county’s anticipated $319.6 million series 2024A senior lien bonds and $128.7 million series 2024B senior lien refunding bonds.

Due to favorable market conditions, WASD’s latest bond issuance saved the county $16.59 million in interest payments.

“We contribute to our community’s health not only by providing quality drinking water and reliable wastewater removal, but also by keeping rates affordable and our finances strong,” WASD Director Roy Coley said in a statement.

“The critical infrastructure projects we are undertaking could not be completed without the support of our crucial financial and office staff ensuring that we have the resources to finance our (capital improvement program). It is truly a team effort to deliver our vital services to our community each day.”

S&P credited its rating changes to WASD’s strong leadership and strategic planning, which includes a comprehensive five-year plan.