RATINGS SERVICE ASSIGNS AA RATING TO MESA

Costa Mesa, Calif.–Fitch Ratings Services, a leading global rating agency, recently assigned an AA rating to Mesa Consolidated Water District’s (Mesa) refunding Certificates of Participation (COPS), series 2009. The certificates will refund Mesa’s outstanding 1998 COPS. Such a rating reflects Mesa’s consistently strong financial operations.

The AA rating is indicative of Mesa’s strong financial performance in terms of annual debt service coverage and liquidity, low debt levels even with estimated future debt issuances, good management practices, and stable and diverse service area. The rating also considers Mesa’s decreased reliance on imported water and expansion of its Colored Water Treatment Facility to meet long-term needs.

“Mesa’s Board of Directors last year adopted a Strategic Plan in which the Board discussed strengthening Mesa’s bond rating, and the Board and staff have worked diligently to meet those goals” said Shawn Dewane, Mesa’s Board President. “Improving credit quality provides significant interest cost savings for the District.”

Fitch has determined that the management practices of the District are good. Mesa has raised rates as needed, while maintaining a healthy balance between rate affordability and capital infrastructure renewal and replacement needs.

More information about Mesa is available at www.mesawater.org. Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com.

Mesa provides water service to more than 100,000 customers in an 18 square-mile area. The service area includes the city of Costa Mesa, parts of Newport Beach, and the John Wayne Airport. Mesa is dedicated to satisfying our community's water needs.

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