Overview Key strengths Key risks Almost all cash flows come from monopolistic rate-regulated water and wastewater utility operations. Negative forecast discretionary cash flow indicates external funding needs, which will likely entail additional leverage. Geographic and regulatory diversity with about 2.1 million customers across six states. More stringent drinking water standards Effective management of regulatory risk, as demonstrated by the implementation of numerous constructive regulatory rate-mechanisms. Inflation, higher interest rates, and delayed cost recovery could weigh on the company?s credit quality. Derives the majority of revenue from residential and other lower-risk customers, which are less cyclical than industrial and commercial customers. As one of the largest investor-owned water utility companies in the U.S., VUR also benefits from geographic and regulatory diversity.
