...This report represents a sector-specific extension to Fitch Ratings' global criteria on "Revenue- Supported Rating Criteria," dated June 2014, and details Fitch's approach to rating U.S. municipal water and sewer (sanitary and stormwater) utilities. Municipal water and sewer utilities in the U.S. are enduring natural monopolies that provide highly essential services and generally have local rate-setting authority. These strong fundamentals generally have produced favorable financial margins and strong protections for bondholders. Fitch's average rating for these utilities is `AA'. This report elaborates on Fitch's review of specific factors known as the "10 Cs," which are a subset of the Revenue-Supported Rating Criteria's four areas: styled governance and management, financial profile, debt profile and operating profile. The 10 Cs include crew (an informal term for management); coverage and financial performance; cash and balance sheet considerations; charges and rate affordability; capital...
