DeKalb-Jackson Water Supply District Inc., AL Debt Rating Raised To 'BB', DeKalb-Jackson Coop Dist Rating Raised To 'B+?

NEW YORK (S&P Global Ratings) Oct. 16, 2020--S&P Global Ratings raised its rating on DeKalb-Jackson Water Supply District Inc. (DKJWD), Ala.'s utility revenue debt three notches to 'BB' from 'B' and raised its rating on DeKalb-Jackson Cooperative District's (DKJCD) revenue debt two notches to 'B+' from 'B-'. The outlook is stable. "The upgrades reflect the amalgam of recent management actions and projections of lower debt service requirements," said S&P Global Ratings credit analyst Scott Sagen. Management raised water rates for those customers that are high volume users, and the rate increase takes effect in January 2021. In addition, management identified cost savings that should also lead to improving financial performance. By virtue of the water rate adjustment, we no longer

...October 16, 2020 NEW YORK (S&P Global Ratings) Oct. 16, 2020--S&P Global Ratings raised its rating on DeKalb-Jackson Water Supply District Inc. (DKJWD), Ala.'s utility revenue debt three notches to '##' from 'B' and raised its rating on DeKalb-Jackson Cooperative District's (DKJCD) revenue debt two notches to 'B+' from 'B-'. The outlook is stable. "The upgrades reflect the amalgam of recent management actions and projections of lower debt service requirements," said S&P Global Ratings credit analyst Scott Sagen. Management raised water rates for those customers that are high volume users, and the rate increase takes effect in January 2021. In addition, management identified cost savings that should also lead to improving financial performance. By virtue of the water rate adjustment, we no longer view management as lacking a willingness to adjust rates, which had previously constrained the rating. The rating remains in the speculative grade category because of expectations of thin debt service...

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