News Release
For immediate release
May 10, 2010

Contact:
Michele Todd Ralston, Greater Cincinnati Water Works
(513) 591-7972 or Michele.ralston@gcww.cincinnati-oh.gov 

GCWW Receives Aaa Credit Rating from Moody’s
One of only 19 water utilities in nation to hold rating

Cincinnati, OH – Greater Cincinnati Water Work’s (GCWW) long-term credit rating has been recalibrated from “Aa1” to “Aaa” by Moody’s – the highest rating possible for a municipal water utility. Only 19 of the nation’s 54,000 water utilities, including GCWW, have achieved an “AAA” rating from Moody’s.

GCWW now has a “twin-triple A” credit rating when coupled with its Standard & Poor’s “AAA” rating.

“The recalibration shows that we are in great financial health, which is very important in our current economy,” says David Rager, GCWW Director. “Plus, it reaffirms our continued efforts to be fiscally responsible.”

Moody’s, a provider of credit ratings, research and risk analysis for financial markets, began recalibrating its long-term municipal ratings to its global rating scale last month so municipalities can more easily be compared to companies in the private sector. Previously, municipalities were calibrated on a separate rating scale.

To position Moody’s municipal ratings on the global scale several key factors were considered:

•         intrinsic financial strength

•         historical default and loss experience of similar credits

•         future potential for default and loss

•         potential sources of external support in the event of financial distress

•         vulnerability to event risk and other factors that could cause a rating change

•         strong management and management processes

“GCWW’s financial forecasting, infrastructure maintenance programs, available water supply and water quality initiatives are all strengths recognized by rating agencies,” says Rager. “ Our long term planning, including the proposal to transfer GCWW to a new public regional water district that can serve more customers and keep rates low is also considered a positive because it can strengthen our financial future.”

Click here for PDF version of this press release

# # #