S&P Global Ratings (Standard & Poor’s) and Moody’s Investors Service (Moody’s) have assigned (2024 bonds) and reaffirmed (bonds outstanding) AAA and Aaa ratings for the Oklahoma City Water Utilities Trust (OCWUT). When compared to similar utilities nationwide, these ratings place OCWUT among the top 7.2% and 4.9%, respectively.
These ratings allow OCWUT to continue borrowing funds at the lowest-possible interest rates, creating a cost savings for the utility and enabling it to more effectively execute its five-year, $1.79 billion capital plan for infrastructure improvements and water supply sustainability.
The newly assigned ratings from both agencies relate to OCWUT’s approximately $270 million utility system revenue refunding and improvement bonds, series 2024.
In its report, Moody’s commended OCWUT for its “long history of solid operating results supported by proactive financial planning.” It also cited the utility’s location within an “economically healthy service area” and “stabilizing influence of the substantial institutional presence (military and state government) in the area.” In 2021, the Trust entered a 50-year contract with the United States Defense Logistics Agency (DLA) for operation and maintenance of the water and wastewater system within Tinker Air Force Base.
S&P shared equally high remarks, noting “the utility's overall governance as generally among the best of peers” and “exceptionally strong management practices that support robust financial metrics.”
Strengths cited include OCWUT’s broad and diverse service area that encompasses wholesale contracts with 18 communities, and sophisticated, long-range management policies and asset strategy, which target long-term water supply resiliency and reliability.
Among its multiple current infrastructure projects is the 100-mile, second Atoka Pipeline, with estimated completion slated for 2028. Other projects include significant improvements to OCWUT’s two water treatment plants, four wastewater treatment plants, and the completion of a pipeline that will allow for redundancy between the two treatment systems, plus smaller main replacements.
“With increased pricing in materials, chemicals, energy, and construction costs, these remain challenging times for utilities, but we are immensely proud of our staff for their diligence in ensuring our financial stability through strategic short-term and long-term planning that balance system reliability with service affordability amid ongoing growth,” said OCWUT General Manager and Utilities Department Director Chris Browning.
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Media Contact
Jasmine Morris
(405) 297-1950
jasmine.morris@okc.gov
