Nation’s largest credit rating agency upgrades Miami-Dade Water and Sewer Department’s bond ratings

S&P Global Ratings, the nation’s largest credit rating agency, recently raised its ratings on several Miami-Dade Water and Sewer Department (WASD) bonds, as the department continues to implement its $8.6 billion Capital Improvement Program (CIP) to future-proof essential department infrastructure and facilities through the adoption of resilient and climate-ready designs.

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

S&P Global Ratings raised its rating to 'AA' from 'AA-' for its outstanding senior-lien water and sewer system revenue debt, while also raising its rating to 'AA-' from 'A+' on the County's outstanding subordinate-lien water and sewer system revenue bonds and loans. Finally, S&P Global Ratings assigned its '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. The agency also categorized the department’s bond outlook as stable.

Due to a favorable market, WASD recently issued revenue refunding bonds which reduced future debt service payments by approximately $16.59 million in interest payments when compared to other financing options.

“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,” said Water and Sewer Director Roy Coley. “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 CIP. It is truly a team effort to deliver our vital services to our community each day.”

According to S&P, WASD’s credit quality is underpinned by its strong organizational leadership and supported by a comprehensive five-year strategic plan that outlines achievable goals and actions related to continuous operational improvement, environmental stewardship, and cohesive stakeholder relations. We consider management's recent track record of delivering capital projects at an accelerated pace, even with supply chain interruptions, commodity price increases, and other inflationary pressures, to be critical to its credit quality.

It is the priority of the Miami-Dade Water and Sewer Department to provide safe, reliable service to its customers. For additional information about Department services and programs, visit the WASD website.