Fitch Ratings-Austin-29 February 2024: Fitch Ratings has updated its criteria for U.S. water and sewer utilities. The criteria updates and replaces the criteria from March 2023.
Notable revisions include the introduction of ‘extraordinarily weak’ assessments for revenue defensibility and operating risk, updated language on notch-specific rating positioning and an expanded discussion of circumstances when analytical outcomes may differ from the Rating Positioning table. The last revision is intended to provide greater clarity as to when ratings may be higher or lower than what is suggested by the entity’s leverage profile together with the Rating Positioning table. Fitch has also updated language related to the treatment of lease obligations in financial metrics to align such treatment with current accounting standards.
The key criteria elements remain consistent with those of the prior report. There is no impact on outstanding ratings, and no credits are being placed Under Criteria Observation. The previous version of the criteria has been retired.
The updated criteria report is available at www.fitchratings.com or by clicking the link above.
Contact:
Audra Dickinson
Senior Director
+1-512-813-5701
Fitch Ratings, Inc.
2600 Via Fortuna, Suite 330
Austin, TX 78746
Dennis Pidherny
Managing Director
+1-212-908-0738
Kristen Reifsnyder
Director
+1-646-582-3448
Media Relations: Sandro Scenga, New York, Tel: +1 212 908 0278, Email: [email protected]
Additional information is available on www.fitchratings.com