Standard & Poor's Ratings Services raised by one notch, to 'A,' its rating on South Blount County Utility District, Tenn.'s waterworks revenue refunding and improvement bonds. The outlook is stable. The upgrade is based on a steadily rebounding financial profile due partly to management's willingness to implement sizable rate increases following a 2009 cost of service study. Additional rating factors include the system's: Stable local economy with access to the Knoxville metropolitan area employment base that helps boost income indicators that are otherwise slightly below average; and Adequate water supply and capacity. As recently as fiscal 2008, the district had insufficient debt service coverage (DSC) of 0.77x and cash had dipped to $433,000, or 34 days' cash on hand. Management...
Companies mentioned in this report are:
- South Blount Cnty Util Dist
Action: Outlook: Stable
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