It is incumbent upon the District to remain focused on these efforts so that we can remain a leader in the water industry and continue meeting the water needs of 2 million residents in Southeast Los Angeles County.
(PRWEB) September 09, 2014
In recognition of the Central Basin Municipal Water District’s operational and financial improvements, Moody’s Investor Service has assigned a stable outlook to the District. The previous rating had a negative outlook. This update to the rating is reflective of actions taken to strengthen the District’s financial stability. This includes:
- Decreasing operating expenses by nearly 30% for the current fiscal year in comparison to last FY
- Improving the District’s debt coverage ratio by over 600%
- Paying off $4 million in debt
- Resolution of litigation with the Water Replenishment District
Moody’s recognizes each of these efforts as actions that will improve the District’s operational and financial profile. Additionally, Moody’s viewed the District’s large service area, resolved litigation and new management team as strengths for Central Basin.
“Moody’s update to the District’s rating is due to recent actions to move Central Basin forward with respect to operations and financial stability,” said Central Basin Board President Phillip Hawkins. “It is incumbent upon the District to remain focused on these efforts so that we can remain a leader in the water industry and continue meeting the water needs of 2 million residents in Southeast Los Angeles County.”
To view the Rating Action click here.
Central Basin is a public agency that wholesales imported water to cities, mutual water companies, investor-owned utilities and private companies in southeast Los Angeles County, serving a population of more than 2 million. In addition, Central Basin provides the region with recycled water for municipal, commercial and industrial uses. Formed in 1952, Central Basin is committed to ensuring a safe and reliable water supply for the region.