Mass. Water Pollution Abatement Trust Maintains AAA Rating
Moody’s, Fitch and Standard and Poor’s Cite the Trust’s Programmatic Strength
The Massachusetts Water Pollution Abatement Trust (Trust) today announced the Series 17A (tax-exempt) and 17B (federally taxable) bonds to be issued have been assigned an “AAA” rating by Moody’s, Fitch and Standard & Poor’s. These bonds are being issued to fund $393.7 million of water infrastructure projects throughout the Commonwealth.
“A Triple A rating from all three rating agencies reflects the Trust’s overall programmatic strength,” said Sue Perez, MPAT’s Executive Director. “The Trust’s State Revolving Fund (SRF) bonds are secured with a diverse loan portfolio comprised of individual borrowers with strong credit profiles. Additionally the Trust’s SRF Program receives support from multiple levels of government, including federal capitalization grants, state matching funds and commonwealth assistance payments.”
On Wednesday, May 8th, the Trust is expected to sell $204.645 million in SRF bonds via competitive sale. The Trust is the Commonwealth’s only statewide municipal issuer to maintain a coveted “AAA” rating from all three major rating agencies. The Trust’s prior issue of bonds was named the Northeast Region Finalist for The Bond Buyer’s “Deal of the Year Award” and was the first SRF in the country to sell its bonds through a combined offering of a negotiated and a competitive sale process.
Maintaining the “AAA” rating reduces the cost of borrowing by the Trust, and minimizes the contributions from the Commonwealth to provide subsidized program loans. In 2012 the Trust provided $417 million to finance clean and drinking water SRF funded projects, which created an estimated 2,490 construction and engineering jobs.
The Trust was established in 1989 pursuant to the Federal Clean Water Act and amended in 1998 to encompass the provisions of Title XIV of the Federal Safe Drinking Water Act. Since its establishment, the Trust has provided approximately $6 billion in loans to nearly 300 borrowers to improve and maintain the quality of water in the Commonwealth.