Kevin Bethel, Chief Financial Officer
Southern Nevada Water Authority Investor Relations
Southern Nevada Water Authority Investor Relations
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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:
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.
