Pasadena Water and Power Scores an ‘AA’ Credit Rating

Pasadena Water and Power received a ‘AA’ rating with a stable outlook from Fitch Ratings and S&P Global for the electric revenue and refunding bonds series issued by the City of Pasadena on behalf of the utility. 

In addition, Fitch assessed PWP’s standalone credit profile at ‘AA’. The rating is exemplary but not the highest, which is ‘triple A’ (AAA).

According to Fitch’s Rating Action Commentaries, “The ‘AA’ rating reflects PWP’s very strong financial profile maintained over the past five years with continued stable operating performance, supported by PWP’s very strong revenue defensibility assessment and midrange operating risk.” 

S&P points to PWP’s competitive rates and the future flexibility to meet environmental requirements without negatively influencing the utility’s market position. 

S&P confirmed the utility’s well-embedded management practices resulted in a stable operational and financial risk profile, and believe the utility has strong management, robust liquidity, and rate flexibility.

“This rating reflects Pasadena’s sound business practices, and our dedication to ensuring customers can rely on PWP to deliver high-quality services at competitive rates,” said David Reyes, General Manager of Pasadena Water and Power.

Fitch and S&P are nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission. 

These organizations provide credit ratings, commentary, research, and analysis for organizations nationwide.

PWP provides electricity to more than 65,000 customers within Pasadena. PWP delivers water to nearly 38,000 households and businesses in Pasadena and adjacent communities in the San Gabriel Valley. 

As a community-owned utility, PWP is a not-for-profit public service owned and operated by the City of Pasadena for the benefit of its customers and the community. Its priorities are reliability, responsiveness to customers, competitive rates, and environmental stewardship.