On Tuesday, August 3, Fitch Ratings, a global independent credit rating organization, affirmed Helix Water District’s AA+ rating with a Stable Outlook.
The AA+ rating is the second-highest credit rating an organization can receive and affirms the district’s strong financial stability. The rating process evaluates the district’s financial profile, ability to pay back loans, its ability to limit operating risks and recover costs.
Fitch’s rating reflects Helix Water District’s low operating costs, low cost to treat water and low level of outstanding debt. The rating highlighted the district’s proactive capital improvement program that keeps the district’s infrastructure in good condition by regularly replacing pipe, valves and other key infrastructure. Programs like this reduce the district’s risk of having to pay for expensive emergency repairs.
“We are delighted to have secured another AA+ rating from Fitch,” said Helix Water District Director of Administrative Services Jennifer Bryant. “Our sound financial position during these uncertain times reflects our board and staff’s commitment to efficient operations, a thoughtful capital improvement program and responsible fiscal policies and practices.”
Higher Fitch ratings allow agencies like Helix Water District to receive lower interest rates when it is necessary to obtain loans or issue bonds. Since bonds often have 15-30 year terms, having a lower interest rate can produce substantial cost savings to customers. Upholding a good credit rating shows that the district is in good fiscal health and can continue to reliably and affordably serve customers.
Helix Water District is a not-for-profit local government agency that provides water treatment and distribution for 277,000 people in the cities of El Cajon, La Mesa and Lemon Grove, the community of Spring Valley and areas of Lakeside — east of downtown San Diego. Helix also provides treated water to neighboring Padre Dam, Otay and Lakeside water districts.