Story City, IA Water Revenue Debt Rating Lowered To 'A-' Based On Revised Criteria

CHICAGO (S&P Global Ratings) Dec. 23, 2016--S&P Global Ratings lowered its long-term rating to 'A-' from 'A' on Story City, Iowa's water revenue bonds based on the application of its revised criteria, "Rating Methodology And Assumptions For U.S. Municipal Waterworks And Sanitary Sewer Utility Revenue Bonds" (published Jan. 19, 2016, on RatingsDirect. The outlook is stable. "The rating reflects the combination of a strong enterprise risk profile and an adequate financial risk profile," said S&P Global Ratings credit analyst Gregory Dziubinski. The enterprise risk profile reflects our view of the water system's: Service area participation in the limited Ames metropolitan area economy; Very low industry risk as a monopolistic service provider of an essential public utility; Generally affordable rates, however

...CHICAGO (S&P Global Ratings) Dec. 23, 2016--S&P Global Ratings lowered its long-term rating to 'A-' from 'A' on Story City, Iowa's water revenue bonds based on the application of its revised criteria, "Rating Methodology And Assumptions For U.S. Municipal Waterworks And Sanitary Sewer Utility Revenue Bonds" (published Jan. 19, 2016, on RatingsDirect. The outlook is stable. "The rating reflects the combination of a strong enterprise risk profile and an adequate financial risk profile," said S&P Global Ratings credit analyst Gregory Dziubinski. The enterprise risk profile reflects our view of the water system's: + Service area participation in the limited Ames metropolitan area economy; + Very low industry risk as a monopolistic service provider of an essential public utility; + Generally affordable rates, however pressured by a high county poverty rate; and + Good operational management practices and policies. The financial risk profile reflects our view of the water system's: + Adequate-to-strong...

Ratings Action