... of full obligations is stable, coming in between 1.6x and 1.7x for the past four years, even during periods of lower water sales and escalating debt service costs. Liquidity is strong, reaching 210 days cash on hand (DCOH) in fiscal 2018. LADWP's plan of generating strong recurring revenues to support pay-go capital should maintain favorable coverage over at least the next several years. Unique, Responsive Rate Structure: Rates adopted through fiscal 2020 provide strong revenue certainty and funding for planned capital investment. Adjustable-rate mechanisms that are automatically passed through to customers provide enhanced revenue resiliency from variable sales. However, rate affordability remains a credit focus given that the current monthly bill is high compared to median household income (MHI), and more rate increases are likely to support needed capital spending. Elevated Leverage: LADWP's debt metrics are high compared to those...
