Medians – Solid financial metrics, ability to raise rates underpin stable sector

Source: Evan W Hess, Matt Jaffe, Lauren Von Bargen, Leonard Jones, Alexandra S. Parker, Moody’s, Sector Comment, Water and sewer utilities – US, April 5, 2018
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Municipal water and sewer utilities continue to demonstrate a stable to modestly positive financial performance, according our latest medians data. The steady performance is primarily driven by utility systems’ willingness and ability to raise rates to support operations and debt service. However, declining asset condition across the sector indicates an underinvestment in infrastructure. These credit factors, which are key to our stable outlook for the sector, are set to continue….