...Sound Fiscal Foundation: JEA's water and sewer system (the system) continues to generate strong all-in debt service coverage (DSC) in excess of 2.0x and maintains satisfactory cash reserves. Fitch Ratings expects this trend to continue based on the system's most recent financial forecast ending in fiscal 2020. High but Stabilizing Debt Profile: Leverage metrics have moderated in recent years, but remain elevated for the rating category. Continued improvement is expected, given plans to fund capital needs through at least fiscal 2020 solely from excess operating cash flow and existing reserves. Strong Financial Management: Financial operations and capital planning are guided by a strong management team and a highly engaged board. Affordable Rates: Generally affordable water and sewer rates on a combined basis relative to service area wealth levels provide flexibility. In addition, rate adjustments require only the approval of JEA's board and are not subject to city council review. Manageable...
