S&P: Commission’s credit ‘excellent’

PROVIDENCE – Bond-rating agency Standard & Poor’s maintained the Narragansett Bay Commission’s AA- credit rating, saying the wastewater authority for 10 Rhode Island communities is in good financial condition.
S&P also noted that the agency oversees a large and diverse service area, and charges sewage rates that remain competitive despite recent increases.
“This rating by Standard & Poor’s underscores the [commission’s] excellent financial record and will enable us to continue to make important improvements to our clean water infrastructure at the lowest possible cost to our ratepayers,” said Deputy Director Ray Marshall.
Currently, Phase II of the NBC’s Combined Sewer Overflow Abatement Program is in design, at an estimated cost of $311 million, and a $71 million nitrogen reduction project is in construction at Field’s Point.
For the audited years from 2007 to 2010, S&P noted, net revenues covered debt service by at least 1.25 times; for the fiscal year ended June 30 2010, revenues were 1.3 times debt payments. In addition, unrestricted cash has not dropped below a level representing 144 days of operating expenses since 2007.
“The commission’s financial performance remains very strong, in our opinion,” S&P said in its statement.
The Narragansett Bay Commission owns and operates Rhode Island’s two largest wastewater treatment plants: Field’s Point in Providence and Bucklin Point in East Providence. Together these two facilities serve 70 percent of Rhode Island residents whose homes are connected to sewers.