S & P Assigns Aqua Pennsylvania 'AA-' Secured Debt Rating
Aqua America, Inc. (NYSE:WTR) announced today that Standard and Poor’s
has assigned its ‘AA-’
secured debt rating and ‘1+’
recovery rating (1+ through 6) to the $80 million tax-free First
Mortgage Bonds planned for issuance by the company’s
largest subsidiary, Aqua Pennsylvania, Inc. Standard and Poor’s
recovery rating of ‘1+’
indicates expectations for a full recovery of principal. According to
Standard and Poor’s, the strong ratings
reflect the consolidated credit quality of Aqua America. Aqua America
believes that the ratings will help Aqua Pennsylvania (A+ corporate
credit rating) continue to finance its capital investment program.
Aqua Pennsylvania received approval from the Pennsylvania Economic
Development Financing Authority for the $80 million tax-free debt
issuance which the company expects to price by year end 2008. The
issuance will be used to finance capital improvements to water
distribution systems and treatment facilities in Chester, Delaware and
Montgomery counties in Pennsylvania.
Aqua America Chairman and CEO Nicholas DeBenedictis said, "I
am pleased that despite the current nationwide credit environment, Aqua
Pennsylvania has maintained its strong Standard and Poor’s
ratings, which improve our borrowing opportunities. Our ability to
maintain strong ratings has a direct and positive impact on our
infrastructure investment program evidenced by the recently approved $80
million tax free debt issue we expect to price later this year.”
DeBenedictis went on to explain that reduced borrowing costs for its
capital investments benefit customers. "Our
customers benefit from the reduced borrowing costs, which minimize the
amount of rate increases, as well as from the actual improvements to
their water and wastewater systems.”
Aqua America, Inc. is a publicly traded water and wastewater utility
with operating subsidiaries serving approximately three million people
in Pennsylvania, New York, Ohio, North Carolina, Illinois, Texas,
Florida, New Jersey, Indiana, Virginia, Maine, Missouri, and South
Carolina. Aqua America is listed on the New York Exchange under the
ticker symbol WTR.
This release contains forward looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, among
others, the effect of the S&P credit rating on the company’s
financing, borrowing power and capital investment program, the expected
timing of the pricing of its tax-free debt issuance and the effects on
customers of its capital investment program. There are important factors
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements including:
general economic business conditions, unfavorable weather conditions,
the success of certain cost containment initiatives, changes in
regulations or regulatory treatment, availability and the cost of
capital, disruption in the credit markets, the success of growth
initiatives, and other factors discussed in our Annual Report on Form
10-K for the fiscal year ended December 31, 2007 which is on file with
the SEC. We undertake no obligation to publicly update or revise any
forward-looking statement.
WTRF
