Grand Island (City of) NE Combined Utilities: Update to credit analysis

Grand Island (City of) NE Combined Utilities: Update following A1 rating assignment - Credit Opinion – 2020/11/10 – US$ 250.00 – ...Grand Island (City of) NE Combined Utilities' (A1 stable) credit quality reflects its strong financial performance aided by a competitive rate structure and autonomous rate-setting ability, which has led to robust fixed obligation charge coverage (FOCC) and liquidity metrics. Over the last three years, the utility's FOCC (includes JPA-debt related payments) and liquidity position averaged 1.9x and 340 days cash on hand, respectively, while the adjusted debt ratio has remained low at 23.5% as of fiscal 2019. Though the city's service area is mostly concentrated in agriculture and food processing, the essentiality of these industries has partially mitigated economic weakening stemming from the coronavirus outbreak. Despite the increase in unemployment rate, Grand Island's economy was not hit as hard as the nation. The credit profile further considers the utility's diverse business mix, which includes other essential services such as water supply and sewer treatment, providing more stability...