In a report dated April 23, 2025, Fitch affirmed the ‘AAA’ rating on the Series 2019 and 2021 Collier County Water-Sewer Revenue Bonds and assessed the Water and Sewer District’s Standalone Credit Profile (SCP) at ‘aaa’. The SCP represents the credit profile of the Utility System on a standalone basis, irrespective of its relationship with and the credit quality of Collier County (Issuer Default Rating AAA/Stable). The report stated the following:
“The ‘AAA’ water sewer revenue bond rating and ‘aaa’ SCP reflects the district’s ‘Exceptionally Strong’ financial profile, within the framework of ‘Very Strong’ revenue defensibility and ‘Strong’ operating risk profile, assessed at ‘aa’ and ‘a’, respectively. The district’s leverage, measured as net adjusted debt to adjusted funds available for debt service (FADS), was exceptionally low at 0.7X in fiscal 2024 (FYE September 30), and could increase to 4.2x by fiscal 2029 in Fitch’s Analytical Stress Test (FAST) rating case. The increase in leverage is largely due to an expanded capital improvement plan driven by increased development in the county’s northeast region.”
Credit ratings are important indicators of the credit worthiness of Collier County Government and the bonds it issues. A ‘AAA’ issuer rating enables Collier County to sell bonds at lower, more favorable interest rates, saving taxpayers and ratepayers millions of dollars over the life of the bonds.
“The Clerk’s Finance and Accounting Department, County Administration, Water and Sewer District staff, and the Office of Management and Budget work diligently to secure the best possible ratings for our county,” said Clerk and Comptroller Crystal K. Kinzel. “I want to recognize the great cooperation it takes to maintain these ratings for our utility ratepayers.”
For more information, contact Derek M. Johnssen, Director of Finance and Accounting at (239) 252-7863.