SAN JOSE, Calif., Nov. 8, 2002 -- Standard and Poor's on Thursday announced its decision to lower its corporate credit rating on California Water Service Company (Cal Water) to single-`A' plus (A+) from double-`A'-minus (AA-), classifying Cal Water's outlook as "stable."
California Water Service Co. (Cal Water) is the largest subsidiary of California Water Service Group.
In its news release, Standard and Poor's stated that the change "has been caused principally by deterioration in regulatory support from the California Public Utilities Commission (CPUC)," noting that requests for recovery of reasonable expenses have been delayed as much as 18 months.
"Cal Water has responded proactively to the current regulatory climate, filing rate cases more aggressively and supporting passage of Assembly Bill 2838, a bill intended to protect water utilities from loss caused by regulatory delays. But the unfair regulatory treatment we have received in the past few years has taken its toll, and that is reflected in Standard and Poor's decision," said Chief Financial Officer Gerald F. Feeney.
Although Standard and Poor's views recent regulatory problems as "cause for concern," it does not yet consider them to be problems that cause "a material shift in the company's overall business risk."
California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, and CWS Utility Services. The subsidiaries provide regulated and non-regulated water service to over 1.7 million people in 98 communities. The Company's common stock trades on the New York Stock Exchange under the symbol "CWT".
Additional information is available at the Company's web site at www.calwater.com.
Source: California Water Service
