The ‘AAA’ rating reflects the ability of the clean water (CW) and drinking water (DW) state revolving fund (SRF) bond program’s (the program) financial structure to absorb hypothetical pool defaults in excess of Fitch Ratings’ ‘AAA’ stress scenario without causing an interruption in bond payments. Aggregate pool credit risk is measured using Fitch’s Portfolio Stress Model (PSM), and the strength of the program’s financial structure is measured using Fitch’s Cash Flow Model.
Wed 23 Aug, 2023