Moody’s Reaffirms “A1” Rating for Evansville Sewage Revenue Bonds

Moody’s Investors Service has reaffirmed the “A1” bond rating on the City of Evansville’s Sewage Works Revenue Bonds. The bonds represent $57.7 million of outstanding “Moody’s rated” debt related to city sewage projects.
In a report released by Moody’s stated: “The affirmation reflects the utility system’s stable financial position with adequate debt service coverage, a history of regular rate increases and a diversified customer base,” with a good mix of residential and commercial customers.
The report described the Utility as a “large system that serves a strong local economy” and said the debt service is “adequate and expected to increase in the near term.” Difficulty implementing new financial software was listed as a challenge. However, Moody’s noted that the city was able to reconcile the accounts, and the Utility system “has exhibited stable financial performance.”
Moody’s stated the Utility also has a sizable customer base. Analysts recognized Evansville as a regional economic hub diverse customer base includes manufacturing, higher education, medical facilities and gaming.
“The City has been experiencing some growth in the manufacturing sector, with expansions planned at Berry Plastics and Toyota,” the report stated. “The City’s growth in the Downtown area is expected to continue as well, with an upscale hotel expected to be built near the Ford Arena and the convention center.”