Mesa Water District's Improved Bond Ratings Will Save Money for Customers

The Increase to AAA and AA+ Bond Ratings from Fitch and Standard & Poor’s Enables the District to Finance Water Infrastructure Improvements at Lower Interest Rates

Costa Mesa, Calif. –  Mesa Water District (Mesa Water) has become one of a small number of water districts in Orange County, and the U.S., to receive an AAA bond rating from Fitch Ratings and Standard & Poor’s rating organizations. Fitch rated all of Mesa Water’s bonds at AAA, and Standard & Poor’s gave the District an AAA rating on its outstanding senior debt -- which was refinanced in 2009 -- and an AA+ rating on Mesa Water’s upcoming issuance. Previously, the District’s bonds had an AA rating

The AAA and AA+ bond ratings are among the highest available from the rating agencies. These ratings will save money for Mesa Water customers in the coming years by enabling the District to finance future water infrastructure improvements at lower interest rates, thus reducing costs while increasing Mesa Water’s service and supply reliability, and storage capacity.

“These bond ratings indicate that Mesa Water is in excellent financial condition, due in large part to our Board’s commitment to fiscally conservative practices,” said Mesa Water Board President Shawn Dewane. He continued, “The high ratings also allow us to more cost-effectively improve our water infrastructure for the benefit of our customers.”

Mesa Water has one of the lowest staff-to-customer ratios in Orange County, and the District recently refinanced its debt to save customers over $1 million. The new rating accomplishments reflect the fiscal responsibility of Mesa Water’s Board of Directors, as well as the District’s secure financial position, based on its dedicated, engaged, and knowledgeable leadership, operational stability and strong management, and low overhead costs and debt.

Dewane concluded, “The Mesa Water Board of Directors is extremely proud of this achievement during a time when it is more challenging to accomplish a ratings increase. This signifies Mesa Water’s solid financial position, resulting from many years of prudent fiscal policies and leadership.”

 

About Mesa Water

Founded on January 1, 1960, and governed by a publicly-elected, five-member Board of Directors, Mesa Water is an independent special district that provides water service to 110,000 residents in an 18-square-mile service area that includes most of Costa Mesa, a portion of Newport Beach, and John Wayne Airport. Mesa Water provides 100 percent local reliable groundwater to its customers due to the Mesa Water Reliability Facility. Visit MesaWater.org, follow @MesaWater on Facebook, Twitter, or Instagram, email, or call 949.631.1200 to learn more.