The rating reflects the County's strong financial management, investment in its utility system, and growing customer base
Hillsborough County's Water and Wastewater System has earned the highest possible credit rating from S&P Global Ratings, marking another major milestone in the County's long-term financial management and investment in its utility system.
S&P upgraded the County's Water and Wastewater System credit rating from AA+ to AAA, with a stable outlook.
The AAA rating is the highest credit rating available and reflects S&P's confidence in the County's financial strength and ability to responsibly manage the utility's finances. The upgrade comes as Hillsborough County prepares to finance one of its largest capital projects to date.
A stronger rating means lower borrowing costs
The AAA credit rating can help the County borrow money at more favorable interest rates. For the County's Water and Wastewater System, it could mean lower financial costs for major improvements and ultimately greater value for residents and utility ratepayers.
S&P cited several factors in its decision to upgrade the rating, including the County's continued investment in and expansion of the water and wastewater system, the quality and accuracy of its budgeting process, and the utility's growing customer base.
The rating agency also recognized the utility's strong financial position, including its cash balances and debt service coverage, competitive customer rates, and manageable debt levels. S&P noted the County's ability to proactively address growth-related demands while maintaining affordable rates and a strong financial position.
AAA rating comes at an important time
S&P's upgraded rating comes as Hillsborough County prepares to sell up to $700 million in long-term bonds to provide construction funding for the One Water Campus capital improvement project, which is already underway in southern Hillsborough County.
The One Water Campus will help provide improved water and wastewater service to the rapidly growing area. The planned financing transaction will be the largest ever by Hillsborough County, making the AAA rating significant.
A strong credit rating can help the County secure more favorable borrowing rates when issuing bonds, reducing the cost of financing the major infrastructure investment. For utility customers, those savings can help minimize the financial impact of borrowing for needed improvements.
County secures AAA rating from three agencies
The Water and Wastewater System joins the County's general obligation credit in receiving the highest possible rating from all three major credit-rating agencies including Moody's Investors Service, Fitch Ratings, and S&P Global Ratings. Having both credits rated AAA by all three agencies reflects years of careful financial planning and management.
The ratings agencies evaluate factors including an issuer's financial strength, debt levels, management practices, and the ability to meet its financial obligations. For Hillsborough County, the AAA ratings demonstrate confidence the agencies have in the County's overall financial position and responsible approach to managing public resources.
Investing in Hillsborough County's future
As Hillsborough County continues to grow, maintaining reliable water and wastewater infrastructure is essential to supporting residents, businesses, and new development.
The One Water Campus represents a significant investment in that future, while the Water and Wastewater System's AAA rating provides the County with an opportunity to finance that investment at favorable rates.
The rating upgrade is also a reflection of the County's ongoing efforts to balance infrastructure needs, financial responsibility, and affordability for utility customers. With the Water and Wastewater System now holding an AAA rating from S&P, Hillsborough County is positioned to move forward with major infrastructure investments while continuing its commitment to responsible financial management.
Learn more about the County's One Water Campus by visiting HCFL.Gov/OneWaterCampus.