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SAN FRANCISCO (S&P Global Ratings) Feb. 25, 2025--S&P Global Ratings raised its issuer credit rating (ICR) on the Southern Nevada Water Authority (SNWA or authority) to 'AA+' from 'AA'. The outlook is stable.

"The raised rating reflects our view of the authority's demonstrated resilience, stability, and continued strong financial performance through both a prolonged and severe drought cycle and economic recession," said S&P Global Ratings credit analyst Jenny Poree. "The authority plays a critical role in the region's water supply management and uses conservative forecasting, which suggests that ongoing hydrological volatility or scarcity issues will not materially influence its financial performance or ability to provide water to the service area," Ms. Poree added.

Those strengths are somewhat tempered by the authority's dependance on the Colorado River, which faces a systemic supply and demand imbalance. In addition, the river's operating guidelines are currently being renegotiated, which heightens uncertainty. Unforeseen changes to the existing operating guidelines that govern SNWA's allocations, including any significant policy changes regarding an intentionally created surplus or other storage, would likely affect credit quality.

The SNWA diverts Colorado River water from Lake Mead, treats it to federal Clean Drinking Water Act standards, and delivers the treated water to water purveyors in the Las Vegas Valley and Boulder City. The major water purveyors and their percentage of total SNWA water deliveries are:

• Las Vegas Valley Water District (64.6%);
• Henderson (19.6%);
• North Las Vegas (13.5%);
• Boulder City (2.1%); and
• others (0.2%).

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.spglobal.com/ratings for further information. Complete ratings information is available to RatingsDirect subscribers at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.spglobal.com/ratings.

On Tuesday October 22, 2024 the Southern Nevada Water Authority closed on its State of Nevada Drinking Water State Revolving Fund Loan (Contract #DW2504).  This loan will fund cost assocaited with the River Mountians Ozone Replacement Project.  The loan will be drawn on a reimbursement basis in a maxium amount not to exceed $56,733,000.  The term of the loan is 20-years and a rate of 1.00%.

Las Vegas Valley Water District and Southern Nevada Water Authority have selected a pool of five underwriters for its next new money bond issuance. 

Firms Selcted:

• B of A Securities - Lead Sr. Manager
• Wells Fargo Corporate and Investment Banking
• Morgan Stanley & Co. LLC 
• Academy Securities, Inc.
• Samuel A. Ramirez & Co., Inc.

Maximum par not to exceed $415,000,000*. This negotiated bond sale is projected to close in May to August 2025. Bond proceeds will be used to fund projects in the Southern Nevada Water Authority's Major Construction and Capital Plan. These bonds will be a general obligation of the Las Vegas Valley Water Disctrict and additionally secured by Southern Nevada Water Authority pledged revenues. 

*Subject to change