NEW YORK–(BUSINESS WIRE)–On August 28, 2020, Kroll Bond Rating Agency (KBRA) assigned a long-term rating of AA- with a Stable Outlook to the Soquel Creek Water District Pure Water Soquel Project WIFIA Loan.
Soquel Creek Water District (SqCWD) provides potable drinking water and groundwater resource management to a 17-square-mile service area located along the California coast in mid-Santa Cruz County. Through the Pure Water Soquel Project, the District plans to increase the sustainability of its groundwater basin through groundwater replenishment and seawater intrusion prevention. Seawater intrusion will be mitigated by taking treated municipal wastewater from the City of Santa Cruz, purifying it, and injecting it into the groundwater basin which should increase water levels.
The Project is anticipated to cost approximately $180 million. To finance the project, the District has applied for a WIFIA loan in the amount of $88 million, as well as a loan of $36 million and grant of $50 million, both from the California State Water Resources Control Board.
District management indicates it has not been materially affected by the wildfires in northwest Santa Cruz County as there was no fire damage to SqCWD and no evacuation orders which impacted the service area.
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.
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