...The 'AA+' rating and Stable Outlook reflect Fitch Ratings' expectation that the city of Concord's combined utilities system will maintain its historically very strong and stable financial performance amid increased near-term capital investments and $22 million of debt issuance. Proceeds from the series 2024 issuance will primarily fund upgrades to the combined system's water treatment plants: Hillgrove Water Treatment Plant and Coddle Creek Water Treatment Plant. The upgrade projects are slated to be completed over a seven- to 24-month timeline. Based on Fitch's scenario analysis, leverage is projected to increase as a result of higher capitalized purchased obligations and increasing operating expenses across all component utilities. However, leverage remains below 2x through the forward look and remains supportive of the overall rating, based on the system's sufficient leverage headroom, robust liquidity position and planned multiyear rate increases across the respective component utilities....
