Padre Dam Water District Will Save Money With Credit Rating Upgrade

Padre Dam Municipal Water District announced last week that their credit rating has been upgraded to AA from AA-, which could save the district $496,000 due to loan refinancing.

Standard and Poor’s cited positive factors for the upgrade, including a "5-year Business Plan shows the District is forward thinking and shows financial stability, rate stability, and a moderate capital program, funded largely with cash on hand, ongoing revenues, and grants rather than additional debt."

Padre Dam said it is taking advantage of the current low interest rates and is refinancing eligible outstanding debt. The District’s financial advisors have estimated a total net savings of $496,000 over the life of three outstanding loans.

The District said it is in a strong financial position for the future, in part due to its Deficit Elimination Plan, which has significantly reduced spending.

“Padre Dam’s staff has worked hard to ensure the financial stability of Padre Dam, especially in the face of a 34 percent reduction in water sales," said Padre Dam General Manager/CEO Allen Carlisle.

"This hard work is now saving the District money by taking advantage of historically low interest rates that will allow Padre Dam to invest the savings into other important District projects to ensure the reliability of our systems.” 

Padre Dam news release contributed to this report.

Also read: Santee Pays More for Water as Padre Dam Executive Salaries Rise