[Durham INC] Durham's Water & Sewer Bonds Receive 'AAA' Rating & Stable Outlook

[Blalock, Amy]

CITY OF DURHAM

Office of Public Affairs

101 City Hall Plaza

Durham, NC 27701

 

 

News Release

 

For Details, Contact:

Amy Blalock

Sr. Public Affairs Specialist

(919) 560-4123 x 11253

(919) 475-7735 (cell)

Amy.Blalock at durhamnc.gov <mailto:Amy.Blalock at durhamnc.gov> 

 

For Immediate Release:  February 11, 2010

 

Durham's Water & Sewer Bonds Receive 'AAA' Rating & Stable Outlook 

 

DURHAM, N.C. - Despite the continuing national recession and its revenue
impact on the local economy, the City of Durham's sound financial
management of its water and sewer operations has been rewarded by
receiving affirmation of its 'AAA' bond rating from Fitch Ratings.  

 

The 'AAA' debt rating, the highest rating a municipality can receive,
allows the City to borrow money at the lowest interest rates available,
thus saving taxpayer dollars when financing municipal capital projects.
This 'AAA' rating applies to the City's approximately $32 million in
water and sewer utility system revenue bonds.

 

According to City Manager Tom Bonfield, the City's solid financial
performance and management practices demonstrated to Fitch Ratings that
Durham was stable and worthy of the highest credit rating possible.
"Durham continues to weather this recession well, using conservative
budgeting, multi-year financial planning, and by maintaining a moderate
debt burden," Bonfield said.  "For our citizens, the 'AAA' rating is
another strong indicator that, under the wise guidance of the City
Council, we diligently and efficiently manage the water and sewer
operations that service this community."  

 

Fitch Ratings re-affirmed its 'AAA' rating on the City's outstanding
water and sewer utility system revenue bonds, citing the water and sewer
utility system's solid financial performance as well as the sound
maintenance of the debt service coverage; the low debt ratio; and the
system's demonstrated ability to raise rates to sustain needed
operational and capital funding.  

 

Fitch also cited the vibrant, growing service area; the ample water
supply; and the good condition of the City's treatment facilities as
additional reasons for awarding the 'AAA' rating and 'Stable' outlook.  

 

Additional information about the City's 'AAA' rating is available on the
Fitch Rating's Web site at www.fitchratings.com. 

 

About the City of Durham's Department of Finance

The mission of the City's Department of Finance is to professionally and
prudentially enhance the City's financial position. The department is
comprised of the following divisions:  the Director's Office, Accounting
Services, Treasury, Billing and Collections, Risk Management, and
Purchasing.  For more information, visit 
www.durhamnc.gov/departments/finance.  

 

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