Bond Rating Agencies Affirm Strong Financial Status for JEA Water Services

2024-01-09

JACKSONVILLE, FL, Jan. 9, 2024 –Three leading independent financial rating agencies have provided solid ratings of JEA’s upcoming bond issuance and on outstanding Water and Sewer System Senior and Subordinated Bonds in the past week. Each agency’s ratings represent the second- or third-strongest available from that agency.

“The assessments reflect confidence in JEA’s board and management,” JEA Managing Director and CEO Jay Stowe said. “As the ratings from all three agencies show, we are producing solid financial results as we continue to improve lives and build community in Northeast Florida.”

Moody’s Investors Service assigned an Aa2 rating to the bond offering, which is expected to consist of approximately $500 million in water and sewer revenue bonds to fund capital projects and refund outstanding debt for savings.  Moody’s also affirmed the Aa2 ratings on the utility’s outstanding water and sewer bonds.  Additionally, Moody’s revised JEA’s Water and Sewer outlook to positive from stable, citing "strong management." 

Fitch Ratings assigned an AA+ rating on the bond offering and the utility’s water and sewer system bonds. Fitch, a major international financial research and assurance company, described JEA’s combined systems as having a “very strong revenue defensibility assessment, strong historical financial performance and very low leverage.” 

Standard & Poor’s (S&P) issued a report declaring JEA’s outlook as “stable.” S&P affirmed JEA’s AA+ rating for water and sewer senior-lien revenue bonds and AA rating on subordinate revenue bonds. Also, S&P affirmed its AA+ and AA respective ratings for each lien on the long-term portions of various variable-rate demand obligations. 

About JEA
JEA is a not-for-profit, community-owned utility that provides safe, reliable and affordable services to more than one million residents across four Northeast Florida counties. JEA is not owned by investors. It was created by the City of Jacksonville to meet the electricity and water needs of those who live in Jacksonville and surrounding communities. JEA’s workforce of nearly 2,200 team members is dedicated to ensuring the demands of its customers are met, both today and for generations to come, while protecting our precious natural resources and supporting our region’s growth and economic development.

Category:

• corporate
• water