Fitch Ratings assigns 'AAA' rating to TWDB for fall bond issuance
Fitch Ratings has assigned an "AAA" rating to the Texas Water Development Board for this fall's bond issuance from the State Water Implementation Revenue Fund for Texas.
AUSTIN, TEXAS, Sept. 10, 2015 -- Fitch Ratings, a global credit rating agency, has assigned an "AAA" rating to the Texas Water Development Board (TWDB) for this fall's bond issuance from the State Water Implementation Revenue Fund for Texas (SWIRFT). The new rating is the highest assigned rating and will allow the TWDB to continue to pass on cost savings to its customers.
The TWDB will take the approximately $1 billion in bonds to market this fall and close on the SWIRFT loans by the end of the year. The entities receiving financial assistance from the SWIRFT are estimated to save over $115 million over the life of the loans.
"This is a significant accomplishment as we move forward with the inaugural round of SWIRFT funding," said TWDB Chairman Bech Bruun. "The financial world recognizes the strong financial foundation that supports our State Water Implementation Fund for Texas (SWIFT) program. Ratepayers and citizens will reap the benefits by obtaining the best interest rates and structures possible for these water projects."
The TWDB approved approximately $3.9 billion in funding over the next decade to 21 entities for 32 state water plan projects across the state in the first round of SWIRFT. The TWDB expects to open the application process for the second round of SWIRFT in December 2015.
"SWIRFT is a valuable financial tool that allows the TWDB to assist in meeting the ever growing water demands of Texas," said TWDB Board member Kathleen Jackson. "The continual growth of the state is a call to communities to offer solutions and plans for maintaining and developing new water supplies. It is our hope that communities will answer the call by applying for SWIRFT and examining the beneficial financial options made available through the program."
About the TWDB
The TWDB is the state agency charged with collecting and disseminating water-related data, assisting with regional planning and preparing the state water plan for the development of the state's water resources. The TWDB administers cost-effective financial assistance programs for the construction of water supply, wastewater treatment, flood control, and agricultural water conservation projects. For more information, visit www.twdb.texas.gov.