County utility system maintain its AA+ bond ratings with stable outlook from Fitch Ratings, S&P Global

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Moody’s affirms Aaa rating

This is one of the features on the Fitch Ratings website.

Fitch Ratings and S&P Global Ratings have affirmed AA+ ratings for Sarasota County’s utility system revenue and refunding bonds, county staff announced on Sept. 18.

The county is issuing approximately $154 million in Utility System Revenue Bonds — Series 2025 — “to fund portions of the enhancements and expansion of its Venice Gardens Water Reclamation Facility (VGWF),” including the plant’s conversion to the Advanced Wastewater Treatment (AWT) process by the end of 2027, a news release notes. The daily treatment capacities also will be expanded, the release adds, with plans for the facility to be fully operational by mid-2028.

The upgrade to AWT will meet Florida Department of Environmental Protection (FDEP) requirements and standards, the release explains. The treatment capacity will rise from 3 million gallons per day to 6 million gallons per day, the release notes.

Sarasota County Administrator Jonathan Lewis pointed out in the release that the Series 2025 bonds are the major funding component for the upgrades to the VGWRF and that staff is “very pleased” with the AA+ ratings with stable outlooks.

“Our dedication to improving and maintaining water quality is a direct result of the County Commission’s leadership and their ongoing commitment to protecting our natural resources,” Lewis added in the release. “The bonds are expected to close in September and will help move this extremely important project forward.”

The release explains, “Fitch Ratings and S&P Global Ratings reports determine the county’s perceived worthiness for investing, similar to an individual’s credit score. Higher bond ratings are typically accompanied by a lower interest rate.” The AA+ rating “indicates the county is running a financially sustainable system,” with low risk to investors who purchase the bonds, the release says.

S&P Global Ratings and Fitch Ratings indicated that their ratings on the utility system are supported by the following county credit factors, the release adds:

  • A growing economic base and a stable and diverse customer base.
  • “Affordable utility rates.
  • “Robust liquidity reserves that can be sustained through the planned Capital Improvement Program.” That five-year program focuses on construction of new county facilities, as well as improvements of county assets.
  • “Sound-to-strong operational and financial policies and procedures.
  • Formal fiscal targets within the budgeting process that provide long-term predictability and stability in regard to financial strength.
  • Formal asset management that is “routinely updated and sophisticated, which is critical to support rising climate risk in the region.”

Additionally, the release says, Moody’s Ratings affirmed its countywide Aaa rating (referred to as a GO, or Issuer Credit Rating; it is comparable to the Fitch or S&P AAA rating). “This rating reflects the government’s ability to repay debt obligations without consideration of any pledge, security or structural features,” the release points out.

The Moody ratings cited Sarasota County’s credit strengths as follows:

  • A comparatively low tax rate that leaves “ample revenue-raising flexibility.”
  • Significant increases in revenue and reserves since the pandemic.
  • The “[i]nstitutional presence afforded by Sarasota Memorial Hospital.”

To view a complete analysis of the county’s utility system revenue bond ratings, visit Fitch, S&P Global or Moody’s ratings, the release adds.

For more information, call the Sarasota County Contact Center at 311, or visit scgov.net.