...The 'AA+' drainage utility revenue bond rating and the associated bank note rating reflect the system's 'Very Strong' financial profile within the framework of 'Very Strong' revenue defensibility and a 'Very Strong' operating risk profile, both assessed at 'aa'. The system's leverage, measured by net adjusted debt to adjusted funds available for debt service (FADS), was very low at 6.4x in fiscal 2025 (FYE Sept. 30). In Fitch's Analytical Stress Test (FAST) rating case, leverage is expected to approximate 6.0x over the next five years, preserving comfortable headroom for the rating. The system's sizable capital plan should enable it to address facility improvement needs and regulatory requirements. Dallas (the city) plans to establish its first stormwater drainage utility CP program this year, authorizing up to $125 million of notes outstanding at any one time to provide interim financing for additions, improvements and extensions to the system. The short-term 'F1+' rating on the system's...
