...Texas Utility Ratings Steady: Overall, Texas utilities endured the four-year drought with limited negative rating actions. The average Texas water and sewer utility rating continues to be a strong `AA' and is expected to remain so for the foreseeable future. Fiscal 2015 Metrics May Slip: Fitch Ratings anticipates that continued flat to declining consumption levels will likely lead to some modest erosion of median statewide audited financial results for the year absent rate hikes and/or modification of rate structures to provide for a larger percentage of cost recovery for basic service. Stable Fiscal 2014 Metrics: Fiscal 2014 financial metrics for most Texas utilities remained relatively stable. While the median utility rate increased, operating revenue declined slightly, a result of declining demand. However, annual debt service coverage (DSC) remained unchanged at 1.7x on an all-in basis. Liquidity declined, but remained healthy overall. End of Drought: Texas emerged from a more than...
